FTX ex-CEO wishes to retain $450 million Robinhood shares for this reason

• FTX Ex-CEO SBF argued that helium should clasp power of astir $450 cardinal successful shares of fiscal trading app Robinhood.
• “Mr. Bankman-Fried requires immoderate of these funds to wage for his transgression defense,” the filing read.

In a court filing connected 5 January, the ex-CEO of FTX, Sam Bankman-Fried aka SBF, argued that helium should clasp power of astir $450 cardinal successful shares of fiscal trading app Robinhood. He was disputing a competing assertion by the property of the institution helium founded and erstwhile ran, the bankrupt crypto speech FTX.

The 56 cardinal shares, which are owned successful rule by Bankman-Fried and co-founder Gary Wang done a holding institution called Emergent Fidelity Technologies, are the taxable of a analyzable ineligible conflict involving bankrupt crypto lender BlockFi and the US Department of Justice.

In a filing to the Delaware bankruptcy tribunal connected 22 December, FTX stated that the shares were lone nominally held by Emergent Fidelity and should beryllium frozen until they tin beryllium reasonably divided among FTX shareholders.

Bankman-Fried argued that helium and Wang had legitimately purchased the shares utilizing wealth borrowed from FTX’s trading arm, Alameda Research, and that the indebtedness was documented. In different filing connected 5 January, BlockFi, a lender that FTX attempted to prop up past twelvemonth earlier filing for bankruptcy, besides opposed the effort to prehend power of the shares.

SBF requires funds to wage for his FTX case

The filing read:

“Mr. Bankman-Fried requires immoderate of these funds to wage for his transgression defense.”

SBF, who pleaded not blameworthy this week to charges including wealth laundering and conspiracy to perpetrate ligament fraud, resigned arsenic CEO connected 11 November, the aforesaid time the institution went bankrupt owed to allegations of a blurring of lines betwixt FTX and Alameda.

In December, FTX argued that Emergent Fidelity, which was 90% owned by Bankman-Fried and 10% by Wang, was a ammunition institution whose interests were “sufficiently identical” to those of the larger company. Ray has antecedently complained astir FTX’s mediocre record-keeping, peculiarly transfers to unit without due indebtedness documentation.

In immoderate case, the filing admits, the statement whitethorn beryllium world present that the US Department of Justice informed the tribunal connected Wednesday that it was seizing the shares arsenic portion of its proceedings against SBF.