BlockFi, which has filed for bankruptcy, is suing Sam Bankman-Fried (SBF) over its Robinhood shares.
BlockFi’s filing for bankruptcy shed more light on Bankman-Fried’s decline, showing that failed crypto trading firm Alameda Research defaulted on $680 million in secured loans in early November.
BlockFi Sues SBF Over Robinhood Shares
The Financial Times reported that crypto firm BlockFi, which filed for bankruptcy protection on Monday, filed a lawsuit the same day against FTX founder Sam Bankman-Fried’s Emergent Fidelity Technologies for Robinhood shares held by the company and pledged to BlockFi as collateral.
The complaint states that BlockFi and Emergent Fidelity Technologies entered into an agreement on November 9 to guarantee the payment of an unnamed borrower. At the same time, there is information that he pledged an undisclosed common stock as collateral. Citing legal correspondence, the FT reported that the borrower was Bankman-Fried’s Alameda Research company.
Bankman-Fried, who was trying to raise money before the collapse of FTX, was trying to sell his Robinhood shares after entering a collateral agreement with BlockFi, according to two people familiar with the FT.
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