Lawyers for disgraced FTX co-founder Sam Bankman-Fried have filed an objection to protect their client’s Robinhood shares from the FTX bankruptcy estate.
Lawyers for Sam Bankman-Fried argued that his Robinhood shares are controlled by Emergent Fidelity Technologies, which is not part of the estate.
Objection can be overturned only by proving fraud, argue lawyers
According to LuckUS prosecutors and bankrupt lender BlockFi have tried to claim the stock, which is worth about $450 million. Bankman-Fried Allegedly The shares were held as collateral for a BlockFi loan to FTX affiliate Alameda before Alameda declared bankruptcy.
Bankman-Fried, aka SBF, owns Robinhood shares through its 90% stake in Emergent, which disclosed the equity acquisition in a separate filing with the US Securities and Exchange Commission (SEC). Bankman-Fried allegedly borrowed money from Almeida for the stock acquisition.
According to FTX’s lawyers, the FTX debtors can seize the shares only by proving that Almeida fraudulently gave them to Emergent.
ftx filed for bankruptcy Its liquidity crisis arose on November 11, 2022, after massive withdrawals and a sharp drop in the value of its native FTT token.
Bankman-Fried pleaded not guilty eight criminal charges, including conspiracy to commit wire fraud and money laundering. he is out now $250 million bail Secured by his parents’ California home and two unnamed guarantors.
On January 3, 2022, after Bankman-Fried’s parents allegedly received threats and harassment, legal counsel for the SBF successfully argued for the bailiffs to maintain anonymity.
Apart from the criminal charges, the SBF faces civil investigation Allegedly by the SEC for defrauding FTX Equity investors.
Crypto Twitter Irate Over SBF’s Robinhood Efforts
The FTX founder, whose paper fortune rapidly evaporated after FTX filed for bankruptcy on November 11, 2022, reportedly needed the shares to pay his legal fees. According to FT Alphaville, Bankman-Fried unsuccessfully tried to sell his Robinhood shares to save FTX before the bankruptcy filing.
Their attorneys argued through case law that a defendant’s “financial inability” to plead their case has “serious consequences”, while the FTX debtors, on the other hand, face only potential economic losses.
Needless to say, Crypto Twitter did not respond to the filing.
NFT artist Ryder Ripps called the filing “typical rich kid behavior”, while others suggested that the SBF’s attempt to retain stolen money to defend itself against accusations of embezzlement was absurd.
pseudonymous Bitcoin Trader Bitcointz implied that the SBF needed no more than $400 million to defend itself.
A judge has set a trial date for Bankman-Fried for October 2, 2023.
BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.
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