Bankman-Fried Entity That Owns Robinhood Stake Goes Bankrupt
- US government already seized $590 million Robinhood stake
- Shares subject to web of creditor claims after FTX collapse
Sam Bankman-Fried departs from court in New York on Jan. 3.
Photographer: Stephanie Keith/BloombergThis article is for subscribers only.
Sam Bankman-Fried’s Emergent Fidelity Technologies Ltd., an offshore entity that owns 55 million shares of Robinhood Markets Inc., filed for bankruptcy Friday amid a fight over who should get the stock following the collapse of FTX Group.
The Robinhood stake, worth more than $590 million at current market prices, has been seized by the US government, but its ultimate fate is unclear. A hodgepodge of parties including the Justice Department, bankrupt crypto lender BlockFi Inc., and Bankman-Fried himself, are trying to take the shares for good.