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FTX Makes an attempt to Freeze Robinhood Shares as Collectors Swarm to Scoop $450M in HOOD Inventory – Bitcoin News


Court filings present that debtors from FTX Trading Ltd. and Alameda Research need 56 million shares of Robinhood inventory frozen after a number of collectors are searching for entry to the funds, and in addition 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, courtroom paperwork present that debtors from FTX wish to freeze 56 million Robinhood shares owned by a subsidiary crafted by SBF known as Emergent Fidelity Technologies. The debtors from FTX and Alameda have mentioned that a number of entities are searching for to assert these property, together with the now-defunct crypto lending agency Blockfi. FTX needs the courtroom to implement an automated keep towards claims for the 56 million Robinhood shares price roughly $450 million.

The Class A standard inventory Robinhood shares are at present custodied at ED&F Man Capital Markets Inc. (EDFM) in New York City. EDFM doesn’t dispute the possession of the $450 million shares of Robinhood inventory. The courtroom filings say that not solely is BlockFi Inc. trying to achieve entry to the shares, however Yonathan Ben Shimon and SBF are additionally seeking to get hold of the shares. FTX insists to the courtroom that the debtors have “at least a ‘colorable’ claim to ownership of the Robinhood Shares.”

“The fact that multiple prepetition creditors of different Debtors and Mr. Bankman-Fried are all seeking to obtain possession of the Robinhood Shares demonstrates that the asset should be frozen until this Court can resolve the issues in a manner that is fair to all creditors of the Debtors,” the FTX courtroom submitting submitted on Thursday night particulars. “The full evidentiary record, once completely developed, will show the Robinhood Shares are conclusively estate property,” FTX added.

The submitting reveals that Alameda’s ex-CEO Caroline Ellison allegedly virtually offered the Robinhood shares in an over-the-counter (OTC) deal. Further, Ellison later pledged the shares to Blockfi so as to begin a deal which was an try to save lots of the troubled crypto lender from defaulting and submitting for chapter. The courtroom doc reveals that Blockfi’s CEO Zac Prince “agreed to Ms. Ellison’s offer to pledge the Robinhood Shares and certain other Alameda assets as security for Alameda’s debts.”

Tags on this story

$450 Million, 56 million shares, alameda, Alameda Research, Blockfi, Blockfi Zac Prince, Caroline Ellison, ftx, HOOD, HOOD shares, OTC deal, Robinhood, Robinhood shares, Robinhood inventory, Sam Bankman-Fried, sbf, SBF shares, Trouble crypto lender, troubled crypto lender, Yonathan Ben Shimon, zac prince

What do you consider the courtroom filings that present FTX needs to freeze $450 million price of Robinhood shares? Let us know what you consider this topic within the feedback part beneath.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a monetary tech journalist residing in Florida. Redman has been an energetic member of the cryptocurrency neighborhood since 2011. He has a ardour for Bitcoin, open-source code, and decentralized purposes. Since September 2015, Redman has written greater than 6,000 articles for Bitcoin.com News concerning the disruptive protocols rising at present.

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