Bankrupt FTX’s founder Sam Bankman-Fried aka SBF reportedly borrowed funds amounting to $546 million from FTX’s sister firm Alameda Research through promissory notes to buy over 56 million shares of Robinhood.
According to an affidavit filed in the Antigua and Barbuda High Court, SBF and FTX ex-CTO Gary Wang obtained four loans from Alameda Research: $175,076,380.89 and $19,452,931.21 on May 15, 2022, and $316,667,182.50 and $35,185,242.50 on April 30, 2022.
For the purpose of managing their Robinhood stake, the two established Emergent Fidelity Technologies in Antigua. According to the court documents, Bankman-Fried owned 90% of Emergent while Gary owned the other 10%.
Also Read: FTX CEO Sam Bankman-Fried Secures 7.6% Stake in Robinhood
According to Bankman-Fried, the loans were not all obtained at once; rather, they were disbursed in stages during the days preceding and after the dates specified in the filing.
SBF indicated that this would have an impact on assessments of the overall value of the acquired Robinhood shares.
Meanwhile, crypto lender BlockFi sued SBF’s Emergent Fidelity Technologies for the Robinhood shares that were allegedly given as collateral for loans made to Alameda by BlockFi.
In order to stop BlockFi from claiming the shares of Robinhood, FTX requested the intervention of a bankruptcy judge in the United States.
FTX claimed that Alameda Research is the rightful owner of the shares and that FTX keeps the shares while inquiries into other claims are ongoing. In addition to BlockFi, Bankman-Fried and Yonathan Ben Shimon, a creditor of FTX, are also claiming ownership of the Robinhood shares.
