- BlockFi sued the enterprise over the whereabouts of over 55 million Robinhood shares.
- Emergent Constancy Applied sciences filed for Chapter 11 in the identical court docket as FTX.
The Antigua and Barbuda-based holding agency Emergent Fidelity Technologies, owned by Sam Bankman Fried, has filed for Chapter 11 chapter. Paperwork filed on 3 February reveal that Emergent Constancy Applied sciences voluntarily filed for Chapter 11 chapter in the US Chapter Courtroom for the District of Delaware.
Former CEO and FTX founder Sam Bankman-Fried was detained within the Bahamas final yr. U.S. prosecutors had filed felony costs and shared them with the Bahamian authorities, resulting in the arrest.
Combat Over Robinhood Shares
BlockFi, FTX creditor Yonathan Ben Shimon, and Bankman-Fried have all had disagreements concerning the possession of the Robinhood shares, which have been valued greater than $590 million. The US Division of Justice (DOJ) stated on January 6 that it had confiscated the shares and round $20 million in U.S. forex in reference to the motion in opposition to FTX and its officers.
In November, cryptocurrency lending service BlockFi sued the enterprise over the whereabouts of over 55 million shares of Robinhood.
After the DOJ seized the shares and $20 million from brokerage firm Marex Capital Markets, Emergent Constancy Applied sciences claimed possession of each property. Emergent Constancy Applied sciences filed for Chapter 11 in the identical court docket as FTX to hunt a “form of joint administration,” as acknowledged in an announcement by one of many Joint Provisional Liquidators, Angela Barkhouse.
In line with Barkhouse, Gary Wang, the co-founder of FTX, and Bankman-Fried each maintain 10% of the corporate. Whereas Wang has already entered a responsible plea to fraud costs, the felony trial in opposition to Bankman-Fried will start in October.
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