BlockFi sues FTX’s Bankman-Fried over shares in Robinhood

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New­ly-bank­rupt cryp­to lend­ing plat­form Block­Fi has filed a law­suit against Sam Bankman-Fried’s hold­ing com­pa­ny Emer­gent Fideli­ty Tech­nolo­gies seek­ing his shares in Robin­hood that were pledged as col­lat­er­al ear­li­er in November.

The suit was filed on Nov. 28 in the Unit­ed States Bank­rupt­cy Court for the Dis­trict of New Jer­sey just hours after Block­Fi filed for Chap­ter 11 bank­rupt­cy in the same court.

As per the fil­ing, Block­Fi is demand­ing Emer­gent turnover col­lat­er­al as part of a Nov. 9 pledge agree­ment that saw Emer­gent agree to a pay­ment sched­ule with Block­Fi that it has alleged­ly failed to pay.

Block­Fi names the col­lat­er­al as “includ­ing cer­tain shares of com­mon stock.”

In May, Bankman-Fried acquired a 7.6% stake in the online bro­ker­age firm Robin­hood, buy­ing a total of $648 mil­lion in Robin­hood shares through his Emer­gent invest­ment company.

Relat­ed: FTX col­lapse dri­ves curios­i­ty around Sam Bankman-Fried, Google data shows

Block­Fi is one of the lat­est firms to file for bank­rupt­cy as a result of the col­lapse of FTX cryp­to exchange. 

The cryp­to firm ini­tial­ly pre­vi­ous­ly denied that a major­i­ty of its assets were held on FTX ear­li­er in the month, but also acknowl­edged “sig­nif­i­cant expo­sure” to FTX.

In its bank­rupt­cy fil­ing, Block­Fi stat­ed that it has assets between $1 bil­lion and $10 bil­lion with lia­bil­i­ties in the same range, along with over 100,000 creditors.

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