SBF borrowed $546M from Alameda to fund Robinhood share purchase

Sam Bankman-Fried, the disgraced laminitis of cryptocurrency speech FTX, borrowed implicit $546 cardinal from the exchange’s sister steadfast Alameda Research to money his acquisition of Robinhood shares.

Those aforesaid shares were aboriginal utilized by Bankman-Fried arsenic collateral for a indebtedness taken by Alameda from BlockFi, 1 of the entities that are laying assertion to the shares.

An affidavit by Bankman-Fried filed successful the Antigua and Barbuda High Court connected Dec. 12 — the time of his apprehension — and made nationalist connected Dec. 27, revealed helium and FTX co-founder Zixiao “Gary” Wang took retired the loans from Alameda done 4 promissory notes betwixt April and May 2022.

On Apr. 30 loans of astir $316.6 cardinal and $35.1 cardinal were fixed to Bankman-Fried and Wang respectively. Later, 2 loans of astir $175 cardinal and $19.4 cardinal were fixed to Bankman-Fried connected May. 15.

The loans were utilized to money Bankman-Fried’s Antiguan-based ammunition institution Emergent Fidelity Technologies Ltd. which acquired a 7.6% stake successful brokerage steadfast Robinhood successful May astatine a terms of $648 cardinal astatine the time.

He added that if the sum paid by Emergent for the shares was much than the stated $546 cardinal helium has “not [sic] uncertainty that specified further sum was borrowed by Gary and I” to money the acquisition of the Robinhood shares.

The revelation of the loans could complicate the ongoing ineligible tug of warfare for the implicit 56 cardinal shares successful Robinhood that are present worthy astir $430 million.

Embattled crypto lender BlockFi is suing Bankman-Fried’s Emergent for the Robinhood shares that were allegedly pledged arsenic collateral for BlockFi’s loans to Alameda connected Nov. 9.

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FTX stepped successful connected Dec. 23, asking for assistance from a U.S. bankruptcy justice to forestall BlockFi from claiming the shares. It said the shares are owned by Alameda and insisted FTX companies should support the Robinhood involvement portion investigations proceed into different claims of their ownership.

Additionally, Bankman-Fried and FTX creditor Yonathan Ben Shimon are laying assertion to the shares.

Previously, FTX’s Chapter 11 bankruptcy filings successful the United States revealed Bankman-Fried was connected the receiving extremity of a $1 cardinal idiosyncratic loan from Alameda.

Former Alameda CEO Caroline Ellison said connected Dec. 23 arsenic part of her plea deal that “Alameda was borrowing funds that FTX’s customers had deposited onto the exchange.”