FTX and BlockFi: US justice seizes $450 million in Robinhood shares

Three men and a booty – of foreclosures successful FTX then BlockFi created an extraordinary legal and financial file. Spins THE INTERNATIONAL and the complications between the interested parties are such complex that even lawyers and justice need time before deciding. In that case, 56 million shares of Robinhood Markets, Inc.. are in equilibrium between the three entities that contest them : Bankrupt BlockFi, creditors FTX and Sam Bankman-Fried indirectly. The Ministry of Justice will reportedly seize these 450 million dollars waiting to know who they belong to. Immersed in the intricacies of international finance…

FTX, BlockFi and Bankman-Fried: Legal and financial turmoil surrounding Robinhood

To understand the pros and cons of this file lying, it’s worth going back a few months. In that time, FTX it’s a thriving business and Sam Bankman-Fried is still a financial gainer. BlockFi is a company specializing in crypto lending with collateral. And, precisely, he gives one to a company called New loyalty technologies. This entity that is controlled in 90% from SBF, then still CEO of FTX. As a guarantee, this company commits to a payment plan that includes celebrities 450 million dollars shares of Robin Hoodat that time in his possession.

So a company owned by SBF owes BlockFi money in the form of 56 million Robinhood Class A shares. Problem? When FTX I DO bankruptcyjustice demands to recover money wherever possible, including at Emergent Fidelity Technologies. But when then BlockFi also went bankrupt, his teams demanded reimbursement of contracted debts, including the famous one collateral in Robinhood shares.

US justice would have begun seizing Robinhood shares, the ownership of which is disputed

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The US Department of Justice finally makes a decision

But since nothing is ever simple, Emergent Fidelity Technologies is registered in Antigua and Barbuda. And after the fall of FTXshe herself undergoes a procedure of bankruptcy in place. So here we are at the heart from a bag of legal knots with multiples procedures in the process, all of these require in-depth examination. THESE 56 million of shares were so far trapped with the brokerage firm ED&F Man Capital Markets at the request of court.

Finally, it is long one audience this week as part of the case FTXthat a lawyer asked the Delaware court to give these funds. Seth Shapirosenior adviser of the Department of Justice, clarified that these actions were also in balance in bankruptcy of BlockFi. But with the Court of New Jersey! The goal is thatto prevent if this premium is used to reimburse creditors in the FTX file or BlockFi or Emergent Fidelity Technologies. It will be up to the court to decide who gets it first.

“The seized property will be subject to criminal or civil proceedings in the future” said the same lawyer. We will probably know more in the hearings scheduled for it 13 AND 20 January. of Justice it will take a lot of work to determine who owns these 56 million shares. But there is no doubt that interested parties will have compelling arguments to support their claims. Justice definitely has a lot to do in these cases bankruptcy where idle users request remediation. All under the bewildered eyes of the media and public opinion. Perhaps a further step towards stricter regulation of the sector that some call it.

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