As per the latest court filing, bankrupt FTX founder Sam Bankman-Fried aka SBF attempts to retain 56 million Robinhood shares worth $450 Million.
On December 22, 2022, FTX, now led by John Ray, stated that the shares were only nominally held by Emergent Fidelity and should be frozen until they could be equitably distributed among FTX creditors.
Bankman-Fried opposes this notion in his filing, stating that he and Gary Wang borrowed the funds for Emergent to purchase the Robinhood Shares, from Alameda Research in four different promissory notes.
“The FTX Debtors are aware of the existence of these promissory notes but failed to reference them in the Stay Motion,” SBF notes.
Also Read: SBF Borrowed $546M from Alameda to buy Robinhood Shares
The court filing also argues that Bankman-Fried has not been found criminally or civilly liable for fraud and that it is wrong for the FTX debtors to simply urge the court to presume that everything Bankman-Fried has touched is fraudulent.
It also notes that Bankman-Fried won’t be able to access this property if it is alienated from Emergent as some of these funds are necessary for Bankman-Fried to pay for his legal defense.
The filing adds “The FTX Debtors are not entitled to the relief sought in the Stay Motion because the Robinhood Shares are not the property of the estate, the FTX Debtors do not have a colorable claim to the shares, and the automatic stay should not be extended to cover the shares.”
