FTX turned to judge for help
2022.12.23 11:58
FTX turned to judge for help
Budrigannews.com – To stop BlockFi from claiming approximately $450 million worth of Robinhood shares that were purchased by its former CEO Sam Bankman-Fried, the troubled cryptocurrency exchange FTX requested the assistance of a bankruptcy judge in the United States.
BlockFi filed a lawsuit on Nov. 28 and demanded that the holding company of Bankman-Fried, Emergent Fidelity Technologies, hand over 56 million shares of Robinhood Markets. The stocks allegedly served as collateral for BlockFi’s loans to Alameda Research, a crypto trading company.
Both FTX and Alameda petitioned for financial protection prior to settling the BlockFi advances. However, in a bankruptcy court filing in the United States, FTX argued that the company is shielded from debt collection efforts by the law.
Alameda Research owns the shares, according to FTX, which insisted that the troubled FTX companies keep them while other claims to ownership are investigated. The shares are being claimed by Bankman-Fried and FTX creditor Yonathan Ben Shimon, in addition to BlockFi.
In the event that the court chooses to excuse the solicitation to keep the offers, FTX additionally proposed an elective methodology which is to “expand the programmed stay” of the resources. According to FTX, this will “ensure that all creditors, including BlockFi and the others,” will be able to participate in an orderly claims process.
In the wake of asserting to just have $100,000 left in his bank, Bankman-Broiled was as of late conceded discharge, consenting to the severe bail conditions worth $250 million. The parents of the former FTX CEO used the equity in their California home to secure the bond.
The crypto community was perplexed by Bankman-Fried’s ability to fulfill the seemingly impossible requirement despite claiming to have little left over. The former CEO of FTX was even accused by some of using stolen customer funds to avoid jail time. The fact that Bankman-Fried is able to enjoy the holidays in a posh residence is questioned by others.
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