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.

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.

Disclaimer: Beginning in 2021, Michael McCaffrey, the former CEO and majority owner of The Block, took a series of loans from founder and former FTX and Alameda CEO Sam Bankman-Fried. McCaffrey resigned from the company in December 2022 after failing to disclose those transactions.


© 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.