January 27, 2023

FTX under new CEO John J. Ray III filed a motion Thursday in a U.S. bankruptcy court to enforce an automatic suspension or extend suspension injunctions on Sam Bankman-Fried’s 56 million shares of Robinhood Markets, valued at $440 million. FTX research indicates that Robinhood shares are owned by the crypto exchange company and affiliates.

FTX files motion to seek authority over SBF’s Robinhood stock

FTX filed a motion in the U.S. Bankruptcy Court for the District of Delaware, according to a court filing Dec. 22. The exchange claims that the 56 million shares of Robinhood that SBF bought are owned by FTX and that the shares should remain locked until claims from competing creditors are resolved.

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Cryptocurrency lender BlockFi and individual creditor Yonathan Ben Shimon want to get their hands on the shares through separate court proceedings in New Jersey and Antigua. Sam Bankman-Fried also attempted to take control of Robinhood stock in December, shortly before his arrest. SBF’s application to an Antigua court is still pending and he may try to get his hands on the $440 million worth of Robinhood shares.

FTX wants the judge overseeing the bankruptcy case to keep the shares frozen as the company tries to figure out how to repay all of its creditors. FTX stated that Robinhood shares are held in a brokerage account with EDFM for non-debtor company Emergent Fidelity Technologies. Emergent is 90% owned by Sam Bankman-Fried and appears to have no other business.

Sam Bankman-Fried released on bail

As the FTX debtor seeks control of assets related to FTX and Alameda Research, SBF was released on $250 million bail on Thursday. The bail was pre-arranged, placing SBF under house arrest at his home in Palo Alto, owned by his parents Joseph Bankman and Barbara Fried, distinguished Stanford University law professors.

Interestingly, after SBF’s bail, the price of FTX Token (FTT) rose by more than 15%. The FTT price is currently trading at $0.9831. The 24-hour low and high are at $0.8356 and $1.13, respectively.

Read also: Is this the low point for BTC price of $100,000 in 2023?

Varinder is a technical writer and editor, technology enthusiast and analytical thinker. Fascinated by disruptive technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for quite some time and is currently covering all the latest updates and developments in the crypto industry.

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.

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