Cryptocurrency lender BlockFi, which filed for Chapter 11 bankruptcy protection on Monday, on the same day sued FTX founder Sam Bankman-Fried's Emergent Fidelity Technologies holding company for Robinhood Markets (HOOD) shares held by the company and pledged to BlockFi as collateral, the Financial Times reported, citing loan documents it had seen.
The complaint says BlockFi and Emergent Fidelity Technologies entered an agreement on Nov. 9 to guarantee payment by an unnamed borrower, pledging an unnamed common stock as collateral. The FT, citing legal correspondence, reported that the borrower was Bankman-Fried's Alameda Research.
Bankman-Fried, trying to raise money before FTX's collapse, was still trying to sell his Robinhood shares after entering into the collateral agreement with BlockFi, the FT cited two people familiar with the matter as saying.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.