Bankrupt Crypto Lender BlockFi Sues Bankman-Fried for Robinhood Shares, FT Reports

Bankman-Fried, through a holding company, pledged his stake in Robinhood as collateral for a loan.

AccessTimeIconNov 29, 2022 at 3:36 a.m. UTC
Updated May 9, 2023 at 4:03 a.m. UTC
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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.

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Greg Ahlstrand

Greg Ahlstrand was previously CoinDesk's Asia News Editor. Greg has no significant crypto holdings.


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