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Cryptocurrency lending platform BlockFi, which filed for bankruptcy on November 28, has filed a lawsuit against the former CEO of the FTX exchange, Sam Bankman-Fried.
According to BlockFi representatives, SamSam Bankman-Fried used Robinhood stock as collateral for the loan. This is indeed possible - the former CEO of FTX bought 56.2 million shares of Robinhood in May of this year for $648 million. That's 7.6% of the company's total shares.
The lawsuit emphasizes that ownedBankman-Fried, Emergent Fidelity Technologies and ED&F Man Capital Markets refused to transfer Robinhood shares to the service. BlockFi representatives reported that after Emergent went into default, they asked it to transfer the securities, but the shares were never transferred.
Note that even if the court obliges to transfersecurities to the BlockFi service, these funds may not be enough to pay off debts. The bankruptcy filing states that BlockFi has assets worth between $1 billion and $10 billion, but also liabilities within the same range.
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