The aftermath of the FTX scandal at the hands of its founder and former CEO, Sam Bankman Fried, continues to show.
It was February 17th known BlockFi Inc. has applied. A bankrupt crypto lender is appealing to the US Bankruptcy Court in Wilmington, Delaware, to lift Chapter 11 protection of SBF’s offshore investment vehicle.
Emergent Fidelity Technologies Ltd. By Founder of FTX For 7.6% stake in Robinhood Markets Inc. According to the BlockFi movement, Emergent Fidelity’s bankruptcy would not and will not make sense It was filed to weaken BlockFi’s allegations regarding Robinhood’s actions.
However, a spokesperson for financial advisory firm Quantuma, Emergent’s liquidators, said the bankruptcy was filed to ensure the rights of creditors, “whoever they may be,” are protected.
Looking at the many parties claiming to be creditors or “full owners” of Emergent’s assets in the various litigations unfolding in the US, Quantuma principal Tony Shukla said:
“…the [liquidatori] We believe that Chapter 11 protection is the only practical way for Emergent to defend itself, its assets, and the interests of its creditors in the United States.”
In an affidavit, Shukla said Emergent had no significant assets other than stock and $20.7 million in cash seized by prosecutors. According to Shukla, it is “false and baseless” for BlockFi to claim that the bankruptcy was filed on tax grounds.
Robinhood has commented that it would like to reallocate the shares, though it also admitted that it’s not sure if it can.
BlockFi has been in bankruptcy since November 28, 2022, the date it filed for Chapter 11 bankruptcy, amid the FTX crash infection earlier in the month.
In December, it was FTX that went to a bankruptcy judge for BlockFi is barred from claiming nearly $450 million in Robinhood sharespurchased from SBF.
Consider the judge The ability to transfer Robinhood shares Both BlockFi and FTX claim them to a neutral broker or escrow account while the courts decide who is the rightful owner.
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