1 year ago
Bankruptcy justice Michael Kaplan reportedly said that connected Jan. 9, helium volition reappraisal if the shares should beryllium transferred to a neutral broker.
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The mostly disputed Robinhood shares mightiness beryllium transferred to a neutral broker oregon an escrow relationship portion the courts find the rightful owner.
Digital plus lender BlockFi recently sued erstwhile FTX CEO Sam Bankman-Fried to assertion the shares that were supposedly pledged arsenic collateral for the much than $600 cardinal that BlockFi loaned to Alameda Research.
The 56 cardinal Robinhood Markets shares, which are presently frozen, are worthy astir $450 million. These are owned by Sam Bankman-Fried's holding institution called Emergent Fidelity Technologies which was formed successful Antigua and Barbuda and held by a brokerage institution called Marex Capital Markets. According to a lawyer from the brokerage firm, the institution would proceed to clasp the shares until a tribunal bid is issued.
In a caller update to the dispute, bankruptcy Judge Michael Kaplan has reportedly stated that connected Jan. 9, helium would reappraisal whether the shares should beryllium transferred to a neutral broker, which is nether the jurisdiction of the United States, pursuing a petition from BlockFi. Kaplan noted that helium would beryllium considering questions connected who owns the shares aft the lawyers person much clip to analyse competing claims.
Related: Bankruptcy tribunal told FTX and Alameda they beryllium BlockFi $1B, but it’s complicated
On Dec. 23, FTX asked the tribunal to halt BlockFi from claiming the Robinhood shares. The institution argued that by keeping the shares wherever they are, the claimants which see BlockFi, Bankman-Fried and FTX creditor Yonathan Ben Shimon tin “participate successful an orderly claims process.” If not approved, FTX requested an hold of the assets’ “stay” connected their broadside of the fence.
Meanwhile, an affidavit filed by the erstwhile FTX CEO revealed that helium borrowed $546M from Alameda to acquisition the highly sought-after Robinhood shares. The funds were lent by Alameda Research to some Bankman-Fried and FTX co-founder Gary Wang to marque the purchase.
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