FTX asks bankruptcy judge to stop BlockFi from claiming Robinhood shares

Embattled crypto speech FTX asked for the assistance of a United States bankruptcy justice to forestall crypto lending steadfast BlockFi from claiming astir $450 cardinal worthy of Robinhood shares purchased by its erstwhile CEO Sam Bankman-Fried. 

On Nov. 28, BlockFi filed a lawsuit demanding Emergent Fidelity Technologies, Bankman-Fried's holding company, to crook implicit 56 cardinal Robinhood Markets shares. The stocks were allegedly enactment up arsenic collateral for BlockFi's loans to crypto trading steadfast Alameda Research.

Both FTX and Alameda filed for bankruptcy earlier settling the BlockFi loans. However, FTX argued done a filing successful a US bankruptcy tribunal that the instrumentality protects the institution from debt-collecting efforts.

FTX said that the shares are owned by Alameda Research and insisted that the embattled FTX companies should support the shares portion investigations connected different claims to the ownership are ongoing. Apart from BlockFi, Bankman-Fried and FTX creditor Yonathan Ben Shimon are laying assertion to the shares.

If the tribunal decides to disregard the petition to support the shares, FTX besides suggested an alternate attack which is to “extend the automatic stay” of the assets. This volition “ensure that each creditors—including BlockFi and the others—can enactment successful an orderly claims process,” according to FTX.

Related: FTX, Alameda execs plead blameworthy to fraud charges: Community responds

After claiming to lone person $100,000 near successful his bank, Bankman-Fried was precocious granted release, complying with the strict bail conditions worthy $250 million. The enslaved was secured by the erstwhile FTX CEO's parents by utilizing the equity of their location based successful California.

The crypto assemblage was baffled by however Bankman-Fried was capable to meet the seemingly insurmountable requirement aft purporting that helium didn’t person a batch of wealth left. Some adjacent accused the erstwhile FTX CEO of utilizing stolen lawsuit funds to support himself retired of jail. Others question the fairness of Bankman-Fried being capable to walk the holidays successful a luxury home.