In a legal battle, FTX, through its ousted chairman Sam Bankman-Fried, is begging the US bankruptcy court for help. The crypto exchange is said to be involved with two other protagonists in a dispute over the ownership of RobinHood Market (HOOD). This company is valued at $450 million in stock. Fried submitted grievances to the judge in a file, in order to provide solutions to this unfortunate situation.
Ex-FTX boss begs judge’s help
The three parties in conflict for control of these actions would be BlockFi, Yonathan Ben Shimon and Sam Bankman Fried. Although each of them had to maintain relations in the past. BlockFi for example is a lender that FTX backed earlier this year. Ben Shimon meanwhile is a creditor of FTX. He acts as a receiver in Antigua and authorizes the sale of shares under the supervision of a court.
According to the filing Thursday, it would be 56 million shares of the brokerage firm owned by Emergent Fidelity Technologies Ltd. Which was 90% controlled by Bankaman and owned by a corporate body organized in Antigua and Barbuda.
At the time of Chapter 11, the FTX estate had immediately asked ED&F Capital Markets to freeze the shares. In effect, this is the brokerage where the shares are stored. Additionally, the crypto exchange claims that “Emergent only owned nominally the shares and that they belong to FTX”. Emergent is a special purpose holding company that appears to have no other business.
Bankman’s grievance with the judge is to keep the shares frozen in order to allow him to repay his creditors.
Finally, according to the file filed by FTX, the interest shown in RobinHood’s actions sufficiently demonstrated that the assets must remain frozen so that the court can find a solution for both creditors and debtors.
Conclusion
As former FTX CEO Sam Bankman-Fried is free on $250 million bail with his parents as guarantors, a new story is ringing. Indeed, several creditors have petitioned to obtain the RobinHood shares valued at $450 million. In a filing with the US bankruptcy court, the crypto exchange made amends. Sam Bankman-Fried wants the judge to keep the actions frozen for a fair verdict in favor of all parties.
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