Wilbur Kwok
New member
In an effort to recoup shares in Robinhood, BlockFi, a recently bankrupt cryptocurrency lender, is suing former FTX CEO Sam Bankman-Fried. They stated that SBF offered Robinhood shares as collateral two days prior to FTX's collapse.
BlockFi complained to the New Jersey bankruptcy court on November 28, 2022. A promise agreement agreed on November 9, 2022, was said to have been broken by Emergent Fidelity Technologies Ltd, an SBF subsidiary. This lawsuit was filed mere hours after BlockFi requested bankruptcy protection as a result of the devastating liquidity problem that affected FTX.
According to the SEC filing, SBF first bought 7.6% of the stock in Robinhood. It was worth about $600 million at the time. BlockFi claims that it and Emergent agreed to guarantee the repayment obligations of an unnamed borrower by offering some "common stock" as security. Alameda is identified as the borrower in the case's legal documents.
According to BlockFi, SBF has violated its obligations under the pledge agreement. Additionally, they added:
despite formal notification of default and acceleration, "failed to discharge its duties thereunder."
BlockFi is presently working to put the pledge agreement's terms into effect. They are hoping to get back part of the collateral they put up for their now-bankrupt company. They still have a long way to go before they can fully recoup their finances and assets, though. Their liabilities reportedly range from $1 billion to $10 billion. BlockFi also claimed that they owe money to more than 100,000 creditors, including the SEC.
BlockFi complained to the New Jersey bankruptcy court on November 28, 2022. A promise agreement agreed on November 9, 2022, was said to have been broken by Emergent Fidelity Technologies Ltd, an SBF subsidiary. This lawsuit was filed mere hours after BlockFi requested bankruptcy protection as a result of the devastating liquidity problem that affected FTX.
According to the SEC filing, SBF first bought 7.6% of the stock in Robinhood. It was worth about $600 million at the time. BlockFi claims that it and Emergent agreed to guarantee the repayment obligations of an unnamed borrower by offering some "common stock" as security. Alameda is identified as the borrower in the case's legal documents.
According to BlockFi, SBF has violated its obligations under the pledge agreement. Additionally, they added:
despite formal notification of default and acceleration, "failed to discharge its duties thereunder."
BlockFi is presently working to put the pledge agreement's terms into effect. They are hoping to get back part of the collateral they put up for their now-bankrupt company. They still have a long way to go before they can fully recoup their finances and assets, though. Their liabilities reportedly range from $1 billion to $10 billion. BlockFi also claimed that they owe money to more than 100,000 creditors, including the SEC.
