Beleaguered cryptocurrency exchange FTX is attempting to stop BlockFi from claiming more than $440 million worth of shares of Robinhood Markets Inc HOOD purchased by Sam Bankman-Fried.
What Happened: FTX said the Robinhood shares in question are owned by Alameda Research and that the bankrupt FTX companies must hold on to the stock while other disputed ownership claims are being probed, reported Reuters.
Sam Bankman-Fried-founded FTX reportedly argued that BlockFi is attempting “an end-run” around protections for bankrupt companies by targeting its lawsuit at a non-bankrupt holding company instead of Alameda.
FTX said that even though the company in question, Emergent Fidelity, holds the Robinhood shares, the ultimate ownership is with Alameda, according to the report.
See Also: Best FTX Alternatives: How To Keep Your Crypto Safe In 2022
Why It Matters: FTX, its U.S. subsidiary FTX US and its sister firm Alameda Research, along with nearly 130 affiliated companies, declared Chapter 11 Bankruptcy on Nov. 11.
Emergent holds a 7.42% share in Robinhood, noted Reuters. Bankman-Fried began to buy shares in the trading platform in mid-March, according to the report, which cited U.S. Securities and Exchange data.
Bankman-Fried has claimed ownership of the Robinhood shares as a “source of payment for legal expenses,” while an individual FTX creditor has asked a court in Antigua to make the shares available to pay FTX creditors, reported Reuters.
The FTX founder appeared before a judge in New York on Thursday. He will be released on a $250 million bail.
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