FTX Seeks Control Over Sam-Bankman Fried’s $440M Robinhood Shares

FTX under new CEO John J. Ray III filed a motion in a U.S. Bankruptcy Court on Thursday to enforce an automatic stay or extend the stay orders on Sam Bankman-Fried’s 56 million shares of Robinhood Markets worth $440 million. FTX investigation indicates Robinhood shares are the property of the crypto exchange company and affiliates.

FTX Files Motion To Seek Authority Over SBF’s Robinhood Shares

According to a court filing on December 22, FTX has filed a motion in the U.S. Bankruptcy Court for the District of Delaware. The exchange claims Robinhood’s 56 million shares that SBF bought are the property of FTX and the shares must stay locked until the resolution of competing creditors’ claims.

Crypto lender BlockFi and individual creditor Yonathan Ben Shimon want to gain control of the shares via separate court proceedings in New Jersey and Antigua. Sam Bankman-Fried also tried to gain control of Robinhood shares in December, shortly before his arrest. SBF’s request in a court in Antigua is still pending and he may try to get control of Robinhood shares worth $440 million.

FTX wants the judge overseeing the bankruptcy case to enforce the shares to remain frozen while the company tries to figure out how to repay all its creditors. FTX stated that Robinhood shares are held in a brokerage account at EDFM for non-debtor company Emergent Fidelity Technologies. Emergent is 90% owned by Sam Bankman-Fried and appears to have no other business.

Sam Bankman-Fried Released on Bail

While FTX debtor seeks control of assets related to FTX and Alameda Research, SBF was released on a $250 million bond bail on Thursday. The bail was prearranged that saw SBF placed under house arrest in his Palo Alto home owned by his parents Joseph Bankman and Barbara Fried, prominent Stanford University law professors.

Interestingly, after SBF’s bail, FTX Token (FTT) price jumped over 15%. The FTT price is currently trading at $0.9831. The 24-hour low and high are $0.8356 and $1.13, respectively.

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

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