Crypto lending platform BlockFi has filed a suit against Emergent Fidelity Technologies, the company of Sam Bankman-Fried, to recover Robinhood shares pledged as collateral. The Financial Times reports this, citing loan documents.<\/p>\n
On 28 November BlockFi initiated<\/a> bankruptcy proceedings in the United States. On the same day it filed a complaint<\/a> against Emergent Fidelity Technologies, demanding the transfer to the platform of the collateral held by broker ED&F Man Capital Markets.<\/p>\n \u201cEmergent breached its contractual obligations [\u2026], despite the corresponding written notice. [\u2026] BlockFi is authorised to realise its rights to the primary transfer of the collateral,\u201d the suit states.<\/p>\n<\/blockquote>\n According to the complaint, on 9 November Emergent Fidelity Technologies entered into<\/a> a payment-guarantee agreement with the platform for an unnamed borrower. The collateral used consisted of ‘ordinary shares’.<\/p>\n According to the FT, the matter concerns Alameda Research. Journalists also obtained loan documents indicating that the disputed assets are Robinhood securities.<\/p>\n In May 2022, Emergent Fidelity Technologies spent<\/a> more than $648 million to acquire 56.28 million shares of the online broker (a 7.6% stake).<\/p>\n The publication alleges that Bankman-Fried privately tried to liquidate these securities. He allegedly continued negotiating a sale even after signing the credit agreement with BlockFi.<\/p>\n Earlier, Arkham reported that shortly before FTX Group filed for bankruptcy, Alameda Research moved more than $200 million in digital assets<\/a> from the wallets of the US arm of the crypto exchange.<\/p>\n\n