FTX claims rights to Robinhood shares worth over $450m

The new CEO of FTX has enlisted the help of a US court to claim his rights to Robinhood shares worth around $450 million. However, the company is not the only solicitor.

in document Submitted on December 23rd, FTX requests court aid in its fight to retain control Robinhood Shares, Company’s new CEO, John Jay Ray IIIfiled a motion in the US Bankruptcy Court for the District of Delaware.

The board of now-defunct FTX hopes the filing will force a judge to freeze all of Robinhood’s assets until the court can resolve all issues fairly to all of the debtor’s creditors.

Approximately 56 million Robinhood Class A common stock shares are now held by ED&F Mann Capital Markets Inc. in New York. Kept in brokerage account. Former FTX CEO Sam Bankman-Fried acquired these shares through Emergent Fidelity Technologies, a special purpose holding company established in Antigua and Barbuda in May 2022.

Since FTX’s declaration of bankruptcy, three rival stakeholders have begun legal action in multiple jurisdictions to obtain these shares. blockfiMatchpool founders Jonathan Ben Shimon and Bankman-Fried are among them.

The SBF is hoping to get hold of the $56 million in reserves and then use it to pay for its extensive legal fees. Other creditors, such as Blockfi and Ben Simeon, also claim that these Robinhood shares were promised as their collateral from the beginning.

Meanwhile, the latest filing by the new FTX CEO wants the court to freeze all Robinhood shares until all pending issues are resolved.

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