Disgraced FTX founder Sam Bankman-Fried (SBF) is trying to regain access to his $460 million-plus Robinhood stake. The former CEO of the collapsed cryptocurrency exchange claimed he needed them to “pay for criminal defense”, stressing that without them the consequences would be severe and “irreparable”. On the other hand, FTX customers “face only the possibility of economic loss,” SBF’s court filing said.
Robinhood stock controversies
FTX co-founder and former CEO Sam Bankman-Fried (SBF) is currently trying to regain control of Robinhood shares, which are being contested by several parties, including SBF itself, new FTX management, and bankrupt cryptocurrency lender Blockfi.
Bankman-Fried on Thursday asked the bankruptcy court to deny a motion for an automatic stay (stay action) filed by new FTX management on 56,273,269 shares of Robinhood Markets Inc. (Nasdaq: HOOD ). presentation shows.
The court document details that the former FTC chief “requests that the motion to stay be denied” because the new FTC management “failed to carry its heavy burden of establishing that such an emergency remedy is warranted.” Moreover, the stay offer must be “moot” because the US Department of Justice (DOJ) has obtained a warrant to seize Robinhood shares, the court filing added, adding that new FTX management has not withdrawn the stay offer and appealed to Bankman. To protest fried.
The court filing further explains that SBF is “requiring a portion of these funds to pay for his criminal defense,” arguing that his “financial inability to defend himself has serious consequences and is irreparable.” Documentation in progress:
On the contrary, FTX debtors face only the possibility of economic loss.
Bankman-Fried argued that the Robinhood shares at issue were not owned by Alameda Research or any other entities involved in FTX’s bankruptcy. Instead, they are owned by Emergent Fidelity Technology Ltd, which is 90% owned by him. According to the lawsuit, Bankman-Fried and another FTX executive, Gary Wang, borrowed money from Alameda for Emergent to buy Robinhood shares.
Crypto community outraged by SBF’s statements
Many people on social media are outraged by Bankman-Fried’s claim that it faces greater damages than FTX clients who suffer only from the “possibility of economic loss.”
A man he tweeted: “SBF gives new meaning to chutzpah. Arguing in court, the balance of the shares is weighted in favor of him selling HOOD to pay his legal fees, since prison is an irreparable loss and FTX’s creditors will suffer only an economic loss. Other expressed an opinion:
This is one of the most disgusting lines I have ever read. Associating your name with the claim that debtors’ economic loss is not a matter of life and death for some people is heartless and out of touch. What happened to “There’s nothing more important than keeping customers whole”?
What do you think of Sam Bankman-Fried’s claim that he needs Robinhood stock more than FTX clients who only face “possibility of economic loss”? Let us know in the comment section below.
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