FTX asks court for help in battle over $450 million in Robinhood shares

By Adam James • Edited by Mike Millard
Business•December 23, 2022, 4:44AM EST
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FTX asks court for help in battle over $450 million in Robinhood shares

Quick Take

  • FTX sought assistance from a U.S. bankruptcy court in an ongoing fight over ownership of about $450 million in Robinhood Markets stock.
  • The parties trying to gain control of the Robinhood shares are BlockFi, FTX creditor Yonathan Ben Shimon and Sam Bankman-Fried.
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Defunct crypto exchange FTX has sought assistance from a U.S. bankruptcy court in an ongoing fight over ownership of about $450 million in Robinhood Markets stock.

Specifically, 56 million shares are owned by Emergent Fidelity Technologies, an entity 90% owned by disgraced FTX founder and former CEO Sam Bankman-Fried and organized in Antigua and Barbuda, according to a court filing.

The parties trying to gain control of the Robinhood shares — frozen on brokerage ED&F Man Capital Markets in November — are failed crypto lender BlockFi, FTX creditor Yonathan Ben Shimon and Bankman-Fried.

"The fact that multiple prepetition creditors of different Debtors and Mr. Bankman-Fried are all seeking to obtain possession of the Robinhood Shares demonstrates that the asset should be frozen until this Court can resolve the issues in a manner that is fair to all creditors of the Debtors," FTX said.