Crypto platform BlockFi sues former CEO of FTX for shares in Robinhood
Crypto platform BlockFi sues former CEO of FTX for shares in Robinhood

Crypto platform BlockFi sues former CEO of FTX for shares in Robinhood

The crypto platform BlockFi, which is in the process to file bankruptcy proceedings in the US on the 28th of November is also in a lawsuit against the former CEO of the FTX platform, Sam Bankman-Fried’s holding company Emergent Fidelity Technologies.

This is because BlockFi is asking Sam Bankman for the shares purchased in the US payments and online brokerage and payments platform Robinhood. Sam Bankman while completing his deals with the BlockFi pledged these shares of robin hood as collateral from the FTX platform.

Crypto platform BlockFi sues former CEO of FTX for shares in Robinhood
source : blockworks.co

The bankrupt platform BlockFi is asking for shares from the investment company of Sam Bankman-Fried’s Emergent Fidelity Technologies to give the collateral funds as a pledge agreement during the deal this year on 9th November between FTX and BlockFi.

BlockFi is demanding these shares from Robin hood platform which was used s collateral by FTX’s investment company Emergent Fidelity Technologies in the deal between BlockFi and FTX.

Who is Emergent Fidelity Technologies?

The investment company of the former CEO of FTX, Emergent Fidelity Technologies invested in the online brokerage and payments platform Robinhood on May 13th this year. In the process of post-IPO secondary investment with the funds which account for $648.3M, these funds are considered to be equal to a 7.6% share in the online brokerage and payments platform Robinhood.

The securities and assets investment company, Emergent Fidelity Technologies is Sam Bankman-Fried’s holding company which is said to be located in Antigua and Barbuda. As per some reports, it is said that Sam Bankman-Fried was trying to acquire the online brokerage platform Robinhood through this partial purchase of the platform in the year 2022.

As the cryptocurrency platform, FTX has been bankrupt now the plan of FTX’s former CEO to take over the Robhinhoodd platform will never materialize. All the FTX platform has filed the bankruptcy, and the investment company Emergent Fidelity Technologies is not affected and is involved in these bankruptcy liquidations.

The FTX group has been undergoing bankruptcy proceedings for its 134 subsidiary companies in the US bankruptcy protection case. The Crypto Company BlockFi filed bankruptcy proceedings in the US on November 28th along with it. On the same day after a few hours, they also filed a lawsuit against an investment company.

As per the bankruptcy proceedings of BlockFi, It is seen to have assets in the range of $1 billion and $10 billion along with a similar proportion of liabilities with the platform. The platform BlockFi was having approximately 1 lakh creditors and retail investors before its bankruptcy proceedings.