Dec 22 (Reuters) – Collapsed crypto change FTX on Thursday requested a U.S. chapter decide to cease crypto lender BlockFi from laying declare to greater than $440 million price of Robinhood inventory bought by indicted FTX founder Sam Bankman-Fried.
BlockFi had filed a lawsuit on Nov. 28 demanding the turnover of 56 million Robinhood (HOOD.O) shares that had been allegedly pledged as collateral for BlockFi’s loans to the FTX-affiliated crypto hedge fund Alameda Analysis.
However FTX and Alameda went bankrupt with out repaying the BlockFi loans, and U.S. chapter regulation protects the businesses from debt assortment efforts like BlockFi’s lawsuit, FTX stated in a submitting in U.S. chapter court docket in Delaware.
FTX stated it believes that the shares are literally owned by Alameda Analysis, and that the bankrupt FTX corporations should maintain onto the inventory whereas investigating different disputed claims to the fairness shares’ possession.
Bankman-Fried himself has claimed possession of the Robinhood shares, and a person FTX creditor has requested a court docket in Antigua, the place FTX is included, to make the Robinhood shares accessible to repay FTX collectors, in accordance with FTX.
FTX stated Bankman-Fried sought to say the Robinhood shares as “a supply of cost for authorized bills.” Bankman-Fried was arraigned Thursday in New York on fraud costs, and launched on a $250 million bond.
FTX, Alameda, and greater than 100 FTX associates filed for chapter safety on Nov. 11, after a three-day interval by which clients withdrew $6 billion in belongings from the crypto change.
FTX argued that BlockFi is trying “an end-run” round U.S. authorized protections for bankrupt corporations by tailoring its lawsuit to focus on a non-bankrupt holding firm reasonably than Alameda. Though the corporate, Emergent Constancy, holds the Robinhood shares, Alameda in the end owns the shares and owes the debt to BlockFi, in accordance with FTX.
BlockFi didn’t instantly reply to a request for remark.
Emergent holds a 7.42% share of Robinhood, in accordance with Refinitiv knowledge. Bankman-Fried started constructing his stake in Robinhood in the midst of March, in accordance with a U.S. Securities & Change Fee submitting.
Reporting by Dietrich Knauth; Enhancing by Alexia Garamfalvi and Stephen Coates
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