Who will get shares of Robinhood
2022.12.29 08:36
Who will get shares of Robinhood
Budrigannews.com – While the courts determine who is the rightful owner of the largely contested Robinhood shares, they could be transferred to an impartial broker or an escrow account.
The shares that were allegedly pledged as collateral for the more than $600 million that BlockFi loaned to Alameda Research were the subject of a recent lawsuit brought by digital asset lender BlockFi against former FTX CEO Sam Bankman-Fried.
The approximate value of the 56 million frozen Robinhood Markets shares is $450 million. These are held by a brokerage firm known as Marex Capital Markets and are owned by Sam Bankman-Fried’s holding company, Emergent Fidelity Technologies, which was established in Antigua and Barbuda. The company would continue to hold the shares until a court order is issued, according to a brokerage firm lawyer.
According to a recent update to the dispute, bankruptcy judge Michael Kaplan has said that he will look into whether the shares should be transferred to a neutral broker in the United States’ jurisdiction on January 9 in response to BlockFi’s request. After the lawyers have had more time to look at competing claims, Kaplan said that he would think about who owns the shares.
FTX requested a court order preventing BlockFi from claiming the Robinhood shares on December 23. The company argued that the claimants, which include BlockFi, Bankman-Fried, and FTX creditor Yonathan Ben Shimon, can “participate in an orderly claims process” by keeping the shares where they are. FTX requested an extension of the assets’ “stay” on their side of the fence in the event that it was not approved.
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In the meantime, the former CEO of FTX revealed in an affidavit that he borrowed $546 million from Alameda to purchase the highly sought-after Robinhood shares. Alameda Research provided Bankman-Fried and FTX co-founder Gary Wang with financing for the purchase.
