FTX’s new CEO is turning to U.S. courts to claim rights to Robinhood stock worth about $450 million. The firm isn't the only lawyer, however.
In a Dec. 23 filing, FTX asked the court to help it fight to retain control of its Robinhood shares. The company's new CEO, John J. Ray III, filed a motion with the U.S. Bankruptcy Court in Delaware.
The now-defunct FTX board of directors hopes the filing will force a judge to freeze all of Robinhood's assets until the court can resolve all issues equitably for all debtor's creditors.
New York-based ED&F Man Capital Markets Inc. currently holds about 56 million shares of Robinhood Class A common stock in its brokerage account. Former FTX CEO Sam Bankman-Fried acquired the shares in May 2022 through Emergent Fidelity Technologies, a special purpose holding company established in Antigua and Barbuda.
Since FTX declared bankruptcy, three competing stakeholders have begun legal action in multiple jurisdictions to acquire the shares. BlockFi, Matchpool founder Yonathan Ben Shimon and Bankman-Fried are among them.
SBF hopes to access the $56 million in reserves and then use it to pay his hefty legal bills. Other creditors, including BlockFi and Ben Shimon, have also claimed that the Robinhood shares were promised as collateral for them from the start.
Meanwhile, the latest filing from the new FTX CEO wants the court to freeze all Robinhood shares until all outstanding issues are resolved.
Original source: https://crypto.news/ftx-claims-rights-to-over-450m-worth-of-robinhood-shares/
