Bankrupt crypto lender BlockFi has sought a court order for Sam Bankman Fried’s (SBF) offshore investment firm Emergent Fidelity Technologies.
The consequences of the scandal of Sam Bankman Fried, founder and former CEO of FTX, continue to surface. Bankrupt crypto lender Blockfi has filed with the US Bankruptcy Court in Delaware to remove Chapter 11 bankruptcy protections from SBF’s offshore investment vehicle.
Robinhood Shares Can Be Transferred to Escrow Account
Emergent Fidelity Technologies was used by the FTX founder to buy a 7.6 percent stake in Robinhood. According to BlockFi, Emergent Fidelity’s bankruptcy case has little purpose and is planned to weaken BlockFi’s stake on Robinhood.
However, a spokesperson for Quantuma, which is handling Emergent’s liquidation process, said the bankruptcy was made to ensure that the rights of creditors are protected, no matter who they are.
Quantuma Director Toni Shukla said there are multiple parties in various lawsuits pending in the US, either claiming to be creditors or direct owners of Emergent’s assets.
In his affidavit, Shukla explained that Emergent had no significant assets other than $20.7 million in cash, which had been confiscated by prosecutors. Shukla also stated that BlockFi’s claim that the bankruptcy was filed with a fee motivation is also false and baseless.
Stating that he wants to buy back the shares, Robinhood admitted that it is still unclear whether he will do so.
BlockFi has been insolvent since November 28, 2022, when it filed for Chapter 11 bankruptcy as part of the crisis resulting from the collapse of FTX.
Back in December, it was FTX that filed with the bankruptcy judge to stop BlockFi from claiming about 450 million worth of Robinhood shares acquired by SBF.
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