<p><span style="font-weight: 400;">A lawsuit filed by crypto lender BlockFi demands Robinhood shares Sam Bankman-Fried is said to have pledged to the company as collateral, the Financial Times first reported.</span></p> <p><span style="font-weight: 400;">Bankman-Fried owned about 56.2 million shares or 7.6% of Robinhood Class A common stock, according to a </span><a href="https://www.sec.gov/Archives/edgar/data/1783879/000114036122018827/brhc10037465_sc13d.htm"><span style="font-weight: 400;">document</span></a><span style="font-weight: 400;"> filed with the Securities and Exchange Commission.</span></p> <p><span style="font-weight: 400;">Now those Robinhood shares are at the center of a lawsuit filed by BlockFi in the hours after the lender </span><a href="https://www.theblock.co/post/188915/crypto-firm-blockfi-files-for-bankruptcy"><span style="font-weight: 400;">petitioned</span></a><span style="font-weight: 400;"> for bankruptcy protection in the very same New Jersey court, </span><a href="https://pacer-documents.s3.amazonaws.com/109/1094078/118164201903.pdf"><span style="font-weight: 400;">documents</span></a><span style="font-weight: 400;"> show. Named in the suit are Bankman-Fried’s Emergent Fidelity Technologies, and ED&amp;F Man Capital Markets which allegedly failed to properly broker the pledged assets in question, the filing said.</span></p> <p><span style="font-weight: 400;">After Emergent entered a state of default with BlockFi, the lender sought to take custody of collateral shares of Robinhood as per the forbearance terms of the agreement, however, "EDFM has refused to transfer the collateral to BlockFi,” the complaint said.</span></p> <p><span style="font-weight: 400;">BlockFi still has a long way to go if it wins the Robinhood shares in question, with anywhere between $1 billion and $10 billion in assets and liabilities alongside an estimated 100,000 creditors, according to the company’s bankruptcy documents.</span></p> <p><span style="font-weight: 400;">Neither ED&amp;F Man, nor Robinhood immediately responded to The Block’s request for comment.</span></p> <p><i><span style="font-weight: 400;">Kristin Majcher contributed reporting to this article.</span></i></p><br /><span class="copyright"><p>© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p> </span>