New evidence against Sam Bankman-Fried, the former CEO of FTX, has revealed that he bought Robinhood shares using money borrowed from Alameda Research, the company he also founded.
information in court documents shows that Bankman-Fried borrowed Alameda Research Money to buy Robinhood shares. SBF said in a court affidavit that it, along with FTX co-founder Gary Wang, took a $546M loan from Alameda Research to invest in Robinhood.
Bankman-Fried explained that they took a loan through promissory notes in April and May 2022 and used it to cash out Emergent Fidelity Technologies Ltd. His new company bought a 7.6% stake in Robinhood.
FTX’s battle for Robinhood shares continues
The Bankman-Fried affidavit provides new evidence, which serves as a curve ball amid an ongoing tussle to claim Robinhood shares. The stock has been challenged by crypto lender Blockfi, SBF and ftx group, Everyone is trying to take them back. These 56 million shares are currently worth over $440M.
crypto lender blockfi Claims that he holds the shares because of a deal he made with the bank man in November. However, it has already filed for bankruptcy like FTX Group. The crypto lender claims that Robinhood shares were held as collateral for a loan taken from them by Alameda Research.
However, the rabbit hole keeps getting deeper. The SEC claims that FTX asked its users to send money to North Dimension, an electronics retailer with a website full of misspelled words and ridiculous procedures. The money was then used to finance Alameda’s business activities.
Now, Bankman Fried is still with his parents, awaiting trial after being extradited to the US from the Bahamas on record $250M bail.
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