{"id":74390,"date":"2023-02-20T19:06:18","date_gmt":"2023-02-20T17:06:18","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=74390"},"modified":"2025-09-09T19:48:19","modified_gmt":"2025-09-09T16:48:19","slug":"blockfi-appeals-bankruptcy-of-sbf-linked-owner-of-7-6-stake-in-robinhood","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/blockfi-appeals-bankruptcy-of-sbf-linked-owner-of-7-6-stake-in-robinhood\/","title":{"rendered":"BlockFi appeals bankruptcy of SBF-linked owner of 7.6% stake in Robinhood"},"content":{"rendered":"

BlockFi, which is undergoing bankruptcy proceedings<\/a>, urged the court to strip the former CEO Sam Bankman-Fried (SBF)’s Emergent Fidelity Technologies Ltd of creditor protections under Chapter 11 of the U.S. Code. The Wall Street Journal<\/a>.<\/p>\n

In May 2022, the firm in question became the owner of 7.6% of Robinhood<\/a>.<\/p>\n

According to BlockFi’s motion, Emergent Fidelity’s bankruptcy status makes little sense. Including the FTX firm in the process was aimed at undermining BlockFi’s claims to the online broker’s shares.<\/p>\n

\n

\u00abGiven the presence of parties who in various lawsuits claim creditor status or \u201cdirect owners\u201d of Emergent’s assets<\/em> [\u2026] [financial advisers] say that Chapter 11 protection is the only practical way to give the company the ability to defend itself, its assets and the interests of its creditors in the United States\u00bb,<\/p>\n<\/blockquote>\n

In sworn testimony, the executive explained that the SBF-linked firm does not own material assets aside from the shares, as well as $20.7 million seized by investigators.<\/p>\n

Shukla called BlockFi’s comments \u201cincorrect and unfounded,\u201d saying that the bankruptcy filing was motivated by fees.<\/p>\n

In late December 2022, Bankman-Fried testified that, together with FTX co-founder Gary Wang founded the company<\/a> Emergent Fidelity Technologies to acquire a 7.6% stake in Robinhood.<\/p>\n

In July, the American arm of the exchange entered into a deal with BlockFi<\/a>. The agreement provided for the issuance of a revolving credit facility to the crypto-lending platform of $400 million and an option to purchase it for $240 million.<\/p>\n

On November 28, BlockFi initiated<\/a> bankruptcy proceedings in the United States. On the same day it filed a complaint<\/a> against Emergent Fidelity Technologies, seeking the transfer of collateral held by ED&F Man Capital Markets.\u00a0<\/p>\n

Subsequently the platform filed suit<\/a> against the firm. According to documents, on November 9 Emergent Fidelity Technologies entered into an agreement with BlockFi guaranteeing payment for an unnamed borrower. As collateral, they used \u2018ordinary shares\u2019.<\/p>\n

According to media reports, the matter involved Alameda Research. Journalists also obtained credit documents indicating that the dispute concerned Robinhood’s securities.<\/p>\n

In December FTX filed in court<\/a> to shield the Robinhood stake from creditors.<\/p>\n

In January 2023, the U.S. Department of Justiceimposed a seizure<\/a> on Robinhood’s securities.<\/p>\n

As reported in February, the online broker announced plans to buy back<\/a> 55 million shares owned by Emergent Fidelity Technologies.<\/p>\n","protected":false},"excerpt":{"rendered":"

The BlockFi platform, undergoing bankruptcy proceedings, urged the court to strip Emergent Fidelity Technologies Ltd, owned by the former CEO Sam Bankman-Fried (SBF), of creditor protections under Chapter 11 of the U.S. Code. The Wall Street Journal reported.<\/p>\n","protected":false},"author":1,"featured_media":74391,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1436],"class_list":["post-74390","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-blockfi"],"aioseo_notices":[],"amp_enabled":true,"views":"9","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/74390","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=74390"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/74390\/revisions"}],"predecessor-version":[{"id":74392,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/74390\/revisions\/74392"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/74391"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=74390"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=74390"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=74390"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}