The highly contested Robinhood shares claimed by BlockFi and FTX could be transferred to a neutral broker or an escrow account while the courts determine who is the rightful owner.
BlockFi, a digital asset lender, recently sued former FTX CEO Sam Bankman-Fried to recover the shares that were allegedly pledged as collateral for the more than $600 million loan to Alameda Research.
The current value of the 56 million Robinhood Markets shares is around $450 million. They are owned by Bankman-holding Fried’s company, Emergent Fidelity Technologies, which was founded in Antigua and Barbuda and is held by Marex Capital Markets, a brokerage firm. The brokerage firm’s lawyer stated that the company would continue to hold the shares until a court order is issued.
Following a request from BlockFi, bankruptcy Judge Michael Kaplan stated in a new update to the dispute that on Jan. 9, he would review whether the shares should be transferred to a neutral broker under US jurisdiction.
(Reporting by Shikha Singh, Editing by Kapil Rajyaguru)
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