Disgraced FTX founder Sam Bankman-Fried (SBF) is attempting to regain access to his Robinhood shares, which are worth more than $460 million. The former CEO of the collapsed crypto exchange claimed he needed to “pay for criminal defense”, adding that without him the consequences would be dire and “irreparable”. FTX customers, on the other hand, “face only the potential for economic loss,” SBF’s court filing said.
Robinhood Shares Controversy
FTX co-founder and former CEO Sam Bankman-Fried (SBF) is trying to regain control of his Robinhood shares, which are currently disputed by multiple parties, including SBF itself, new FTX management and bankrupt crypto lender Blockfi Huh.
Bankman-Fried sued Robinhood Markets Inc. from the bankruptcy court. (Nasdaq: HUD) to deny a motion to enforce a stay motion filed by new FTX management on 56,273,269 shares valued at more than $460 million, Thursday’s court filing shows.
The court document states that the former FTX chief “requests that the stay action be denied” because the new FTX management “has failed to bear its heavy burden of establishing that such an extraordinary measure is warranted.” Is.” In addition, the US Department of Justice (DOJ) has obtained a warrant to seize Robinhood shares, as the new FTX management has not retracted the stop motion, prompting Bankman to say the stop motion should be “controversial.” Called to file objection.
The court filing further states that the SBF “requires some of these funds to pay for its criminal defense,” claiming that “the financial inability to defend itself has serious consequences, and is irreparable.” Is.” Filing continues:
In contrast, FTX debtors only face the potential for economic loss.
Bankman-Fried argued that the Robinhood shares in question are not owned by Alameda Research or any of the other entities implicated in the FTX bankruptcy. Instead, they are owned by Emergent Fidelity Technology Ltd., a company they own 90% of. According to court filings, Bankman-Fried and Gary Wang, another FTX executive, borrowed money from Alameda for Emergent to buy Robinhood shares.
Crypto community angered by SBF’s statements
Many on social media are outraged by Bankman-Fried’s claim that she faces greater losses than FTX clients, who only suffer “potential for economic loss.”
a person Tweeted:”SBF gives new meaning to chutzpah. Arguing in court that the balance of equity is in his favor to sell HOOD to pay his legal fees as prison is an immeasurable loss and will only cause economic loss to FTX creditors. Second did not,
This is one of the most disgusting lines I have ever read. Linking your name with the claim that financial loss to debtors is not a matter of life and death for some people is heartless and out of touch. What happened to ‘Nothing matters more than fulfilling customers’?
What do you think of Sam Bankman-Fried’s claim that he needs Robinhood shares more than FTX clients who only face “the potential for economic loss”? Let us know in the comments section below.
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Credit : news.bitcoin.com