The crypto lending company BlockFi filed a lawsuit against Sam Banksman-Fried’s investment company, Emergent Fidelity Technologies. BlockFi has pushed the company to leverage shares in Robinhood as collateral, and in return it agreed to pay a portion of the promised accord.
The lawsuit was filed in the United States Bankruptcy Court on November 28th, after hours of BlockFi’s chapter 11 bankruptcy in the same court.
According to the filing, it is urging Emergent turnover collateral as a part of a Nov.9 pledge agreement that saw Emergent agree to a payment schedule with BlockFi that it has allegedly failed to pay.
Per the filling, BlockFi is demanding Emergent to turnover collateral as part of a Nov. 9 pledge agreement. Emergent agreed to a payment schedule with BlockFi that it is believed has not been met. According to BlockFi, the collateral “includes specific shares of common stock.
Sam Bankman-Fried gained 7.6% in the month of May from his stake in the online brokerage firm Robinhood through his Emergent investment company. This enables him to purchase a total of $648 million in Robinhood stocks through his Emergent investment company.
