Disputed Robinhood Shares May Be Moved to Escrow Account

The judge in charge of the BlockFi bankruptcy case is considering moving the disputed Robinhood shares purchased by Sam Bankman-Fried to a neutral broker until the case’s conclusion.

Judge Michael Kaplan agreed review a request Bankrupt crypto lender to move 56 million from BlockFi to competition Robin Hood The shares used as collateral for a $600 million loan to Alameda Research were held in a neutral account under United States jurisdiction until the conclusion of the bankruptcy case.

BlockFi’s battle with FTX intensifies

Reportedly, the judge will issue his ruling at the next hearing on January 9, 2023, and if Blockfi’s request is granted, close to $500 million in shares will remain in escrow until the court determines whether As to who should go to the shares after the matter is settled.

The shares in question were purchased by Sam Bankman-Fried, the former CEO of FTX, through his holding company, Emergent Fidelity Technologies Limited, in April 2022. At the time of the purchase, the shares represented a 7.6% stake in Robinhood.

However, the crypto lending platform recently sued SBF and believes it should claim the shares, which were used as collateral for a $600 million loan. Alameda Research Before the collapse of FTX in November.

ftx failure There was a new twist yesterday after fresh evidence emerged against the troubled FTX founder, showing he bought shares using money borrowed from Alameda Research. The 30-year-old faces multiple charges including money laundering and wire fraud, among other financial crimes.

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