FTX Attempts to Freeze Robinhood Shares as Creditors Swarm to Scoop $450M in HOOD Stock

Court filings amusement that debtors from FTX Trading Ltd. and Alameda Research privation 56 cardinal shares of Robinhood banal frozen aft aggregate creditors are seeking entree to the funds, and besides Sam Bankman-Fried (SBF).

Court Filing Wants to ‘Enforce an Automatic Stay’ Against Claims Over FTX’s 56 Million Robinhood Shares

On Dec. 22, 2022, court documents amusement that debtors from FTX privation to frost 56 cardinal Robinhood shares owned by a subsidiary crafted by SBF called Emergent Fidelity Technologies. The debtors from FTX and Alameda person said that aggregate entities are seeking to assertion these assets, including the now-defunct crypto lending steadfast Blockfi. FTX wants the tribunal to enforce an automatic enactment against claims for the 56 cardinal Robinhood shares worthy astir $450 million.

The Class A communal banal Robinhood shares are presently custodied astatine ED&F Man Capital Markets Inc. (EDFM) successful New York City. EDFM does not quality the ownership of the $450 cardinal shares of Robinhood stock. The tribunal filings accidental that not lone is BlockFi Inc. attempting to summation entree to the shares, but Yonathan Ben Shimon and SBF are besides looking to get the stocks. FTX insists to the tribunal that the debtors person “at slightest a ‘colorable’ assertion to ownership of the Robinhood Shares.”

“The information that aggregate prepetition creditors of antithetic Debtors and Mr. Bankman-Fried are each seeking to get possession of the Robinhood Shares demonstrates that the plus should beryllium frozen until this Court tin resoluteness the issues successful a mode that is just to each creditors of the Debtors,” the FTX tribunal filing submitted connected Thursday evening details. “The afloat evidentiary record, erstwhile wholly developed, volition amusement the Robinhood Shares are conclusively property property,” FTX added.

The filing shows that Alameda’s ex-CEO Caroline Ellison allegedly astir sold the Robinhood shares successful an over-the-counter (OTC) deal. Further, Ellison aboriginal pledged the shares to Blockfi successful bid to commence a woody which was an effort to prevention the troubled crypto lender from defaulting and filing for bankruptcy. The tribunal papers shows that Blockfi’s CEO Zac Prince “agreed to Ms. Ellison’s connection to pledge the Robinhood Shares and definite different Alameda assets arsenic information for Alameda’s debts.”

What bash you deliberation astir the tribunal filings that amusement FTX wants to frost $450 cardinal worthy of Robinhood shares? Let america cognize what you deliberation astir this taxable successful the comments conception below.

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