Founder of FTX, SBF, has filed a motion in court seeking to block FTX debtors from taking control of his Robinhood shares.
Sam Bankman-Fried (SBF), the creator of the now-defunct cryptocurrency exchange FTX, has filed a motion to prevent the FTX debtors from seizing his 56 million shares of Robinhood.
US authorities had earlier declared their intention to take the $450 million worth of Robinhood shares. SBF, a co-founder of FTX who is now placed under house arrest, contended in a court document that none of the FTX-connected organizations own the Robinhood shares.
In a court filing on Thursday, SBF’s attorneys claimed that their client required the funds to pay for his legal costs. FTX and its trading division Alameda Research are being managed by court-appointed liquidators who are looking for whatever assets they can uncover to recoup investors’ money and pay back FTX’s clients.
An earlier court hearing featured a US Department of Justice prosecutor who announced that the $450 million investment held by SBF will be seized. At a subsequent hearing, it will be decided what the DoJ intends to do with the Robinhood shares.
With a $250 million agreement, FTX pledged to save the crypto lending company BlockFi from bankruptcy; however, BlockFi filed for bankruptcy. Massive exposure to the collapsed crypto exchange existed within BlockFi.
In its bankruptcy case, the market-leading cryptocurrency company sought claims on SBF’s Robinhood shares. Customers of FTX had already brought a class action lawsuit against the exchange and SBF, claiming they were entitled to all of the company’s remaining assets. FTX stated in its bankruptcy case that it has more than 1 million creditors.
