Sam Bankman-Fried's holding company files for bankruptcy

Emergent Fidelity Technologies, a Sam Bankman-Fried holding institution based successful Antigua and Barbuda, has filed for bankruptcy protection.

According to tribunal records filed connected Feb. 3, Emergent Fidelity Technologies submitted a voluntary petition to state bankruptcy nether a Chapter 11 filing successful United States Bankruptcy Court for the District of Delaware. The institution was already the people of a suit filed by crypto lending steadfast BlockFi successful November regarding the presumption of astir 55 cardinal shares of Robinhood.

The Robinhood shares — worthy much than $590 cardinal astatine the clip of work — person been a constituent of contention among parties including BlockFi, FTX creditor Yonathan Ben Shimon, and Bankman-Fried himself. The Justice Department announced connected Jan. 6 it had seized the shares arsenic good arsenic astir $20 cardinal successful U.S. dollars arsenic portion of the lawsuit against FTX and its executives.

Emergent Fidelity Technologies claimed ownership of the shares and the $20 cardinal arsenic its “only known assets," antecedently held by brokerage steadfast Marex Capital Markets earlier the DOJ seizure. According to a declaration by Angela Barkhouse, 1 of the Joint Provisional Liquidators successful the case, Emergent Fidelity Technologies filed for Chapter 11 successful the aforesaid tribunal arsenic FTX to prosecute a “form of associated administration” betwixt the 2 bankruptcies.

“The [Joint Provisional Liquidators’] duties are to the Debtor’s creditors, whoever those creditors whitethorn be,” said Barkhouse. “Given the galore parties claiming to beryllium creditors oregon outright owners of the [Robinhood shares] successful proceedings successful the U.S., the JPLs judge that section 11 extortion is the lone applicable mode to empower the Debtor to support itself, the Assets, and its creditors’ interests successful the U.S.”

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According to Barkhouse, Bankman-Fried owns 90% of the firm, and FTX co-founder Gary Wang owns the remaining 10%. Bankman-Fried’s transgression proceedings is scheduled to statesman successful October, portion Wang has already pled guilty to fraud charges.