Robinhood Markets Declared Bankruptcy assets Seized
2023.02.04 09:23
Robinhood Markets Declared Bankruptcy assets Seized
By Tiffany Smith
Budrigannews.com – In the wake of FTX Group’s demise, Sam Bankman-Fried’s Emergent Fidelity Technologies Ltd., an offshore company that owns 55 million shares of Robinhood Markets Inc., filed for bankruptcy on Friday.
The US government has seized the Robinhood stake, which is worth more than $590 million at current market prices. However, the stake’s final disposition is unknown. The Justice Department, the bankrupt crypto lender BlockFi Inc., and Bankman-Fried himself are among the various parties attempting to seize the shares permanently.
Emergent Fidelity and its liquidators, who were appointed by a court in Antigua, receive some breathing room as a result of the Chapter 11 filing.
One of the liquidators, Angela Barkhouse, stated in a sworn court statement that the liquidators’ “duties are to the debtor’s creditors, whoever those creditors may be.”
According to the JPLs, “Chapter 11 protection is the only practical way to empower the debtor to defend itself, the assets, and its creditors’ interests in the US” due to the numerous parties claiming to be creditors or outright owners of the debtor’s assets in proceedings in the United States.
According to court documents, Emergent Fidelity also has $20.7 million in cash but no other assets.
According to court documents, Bankman-Fried still owns 90% of the company but no longer controls it. Gary Wang, co-founder of FTX, owns 10% of the unit.
Emergent Fidelity Technologies Ltd., U.S. Bankruptcy Court for the District of Delaware, 23-10149 is the case.
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