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    FTX fallout: BlockFi sues SBF for his 7.6% shares in Robinhood, say reports

    By Daniela Ešnerová


    Updated

    BlockFi logo
    SBF’s HOOD stash is currently worth some $619m – Photo: ShutterStock

    Newly-bankrupt crypto-lending platform BlockFi is suing Sam Bankman-Fried over collateral pledged to the lender two days before his firm FTX went bust.

    BlockFi’s complaint against Bankman-Fried’s holding firm Emergent Fidelity Technologies is revealed in papers filed to the New Jersey bankruptcy court.

    The collateral in question was identified as his stake in the Nasdaq-listed trading platform Robinhood (HOOD) by the Financial Times. 

    The 7.6% stake in HOOD held by Bankman-Fried, known as ‘SBF’ in the crypto world, is currently worth some $619m based on HOOD stock price of $9.19.

    BlockFi filed the suit against Emergent hours after seeking bankruptcy protection to restructure, settle its debts and recover assets for its clients. 

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    US100

    17,705.80 Price
    +0.210% 1D Chg, %
    Long position overnight fee -0.0262%
    Short position overnight fee 0.0040%
    Overnight fee time 21:00 (UTC)
    Spread 1.8

    BTC/USD

    64,020.95 Price
    -1.240% 1D Chg, %
    Long position overnight fee -0.0616%
    Short position overnight fee 0.0137%
    Overnight fee time 21:00 (UTC)
    Spread 106.00

    Gold

    2,330.65 Price
    +0.060% 1D Chg, %
    Long position overnight fee -0.0190%
    Short position overnight fee 0.0107%
    Overnight fee time 21:00 (UTC)
    Spread 0.40

    XRP/USD

    0.53 Price
    -1.560% 1D Chg, %
    Long position overnight fee -0.0753%
    Short position overnight fee 0.0069%
    Overnight fee time 21:00 (UTC)
    Spread 0.01168

    Robinhood (HOOD) share price

    FTX and BlockFi links

    BlockFi’s filing for bankruptcy was far from unforseen. The lender halted withdrawals two weeks ago, citing exposure to the collapsed FTX. In June, FTX’s US arm, FTX US, agreed to provide BlockFi with a $400m revolving credit line.

    In the complaint, BlockFi alleges that on 9 November – two days before FTX filed for bankruptcy – Emergent agreed to guarantee the payment obligations of an unnamed borrower, later identified as FTX’s sister company Alameda - by pledging “common stock” as security. The common stock refers to SBF’s HOOD holding, according to the FT.

    Meanwhile, SBF was reportedly looking to sell his HOOD holding in an attempt to solve the liquidity crunch at his platform around the same time.

    Markets in this article

    HOOD
    Robinhood Markets Inc (Extended Hours)
    17.55 USD
    0.27 +1.570%

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    Related reading

    BlockFi bankruptcy: Crypto lender goes under with ‘$257m on hand’; but up to $10bn in liabilities

    The BlockFi logo surrounded by cash and cryptocurrencies

    BlockFi bankruptcy: Can troubled crypto lender resume withdrawals despite FTX exposure?

    BlockFi name and logo displayed on a phone with the FTX logo behind on a laptop screen
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