FTX sought a U.S. bankruptcy court’s help amid a battle over ownership of about $450 million worth of stock in Robinhood Markets, according to a filing Thursday.
At issue are about 56 million shares of the brokerage owned by Emergent Fidelity Technologies Ltd., a corporate entity organized in Antigua and Barbuda and 90% controlled by former FTX CEO Sam Bankman-Fried, according to the filing.
Three parties, the filing says, have tried to get control of those shares: BlockFi, Yonathan Ben Shimon, an FTX creditor appointed as a receiver in Antigua and granted permission to sell the shares under supervision of a court there and Bankman-Fried himself.
FTX’s bankruptcy estate told ED&F Man Capital Markets, the brokerage where the shares are parked, to freeze the stock around the time the Chapter 11 case began on Nov. 11. FTX has determined that Emergent only “nominally” owns the shares and that they truly belong to FTX.
The judge overseeing the bankruptcy case should force the shares to remain frozen while FTX tries to figure out how to repay all its creditors, FTX argued in the filing.
(Reporting by Shikha Singh, Editing by Kapil Rajaygopal)
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