US Court Seizes FTX’s Robinhood Shares
The U.S. Justice Department said in a Delaware bankruptcy court hearing that it had taken custody of $450 million in Robinhood shares from FTX.
In May 2022, then-CEO Sam Bankman-Fried and FTX cofounder Gary Wang formed a holding company called Emergent to purchase shares in the publicly traded Robinhood platform. In an affidavit filed in December, Bankman-Fried and Wang said they used funds taken in loans totaling $546 million from Alameda Research to buy the shares.
A lawyer for FTX noted in the hearing that the owner of the shares was unclear. A likely claimant to the shares—besides FTX creditors—includes BlockFi.
BlockFi says the shares were promised to it by Bankman-Fried and the now-bankrupt company has sued to obtain the pledged shares.
(Reporting by Shikha Singh; Editing by Kapil Rajyaguru)
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