As reported by CriptoFácil, shares of Robinhood brokerage (HOOD) under the ownership of Sam Bankman-Fried, the SBF, became the subject of dispute. Currently, the FTX exchange, as well as BlockFi, are fighting a battle to decide who owns control of these shares. However, US authorities decided to join the fray as well. According to a Bloomberg report, they have reportedly seized or will soon confiscate the 56 million shares of Robinhood linked to former FTX CEO – Sam Bankman-Fried (SBF). According to the current quotation, the shares are worth around US$ 540 million, or R$ 2.1 billion in current values. But the authorities accuse SBF of using Alameda funds to buy the shares and, therefore, of obtaining a personal benefit.
SBF takes another hit
According to Bloomberg coverage, the US government is in the process of seizing the shares. Indeed, one source indicated that officials may have already completed the seizure. The operation is part of the huge lawsuit filed against the former FTX executive, who faces numerous charges, including wire fraud and money laundering. In this sense, the government can seize the shares to place them in the SBF inventory. The value of the shares corresponds to a 7.6% stake in the brokerage, known for offering low costs. When it bought the shares, SBF called Robinhood an “attractive investment”. Recent reports suggested that the former cryptocurrency tycoon borrowed more than $500 billion from Alameda to fund the deal. In addition to SBF, FTX co-founder Gary Wang participated in the purchase. SBF gained 90% ownership of the 56 million shares, while Wang retained 10%. Eventually, SBF and Caroline Ellison, former CEO of Alameda, used the shares as collateral to obtain a loan along with BlockFi. But the broker did not pay, which led BlockFi to face problems and file for bankruptcy. Therefore, the company claims the shares for itself.
tripartite dispute
Three parties (SBF, BlockFi and FTX creditor Ben Shimon) have claimed that they are the rightful owners of the shares. FTX even asked US authorities to block the actions to prevent other parties from gaining access. Emergent’s brokerage – ED&F Man Capital Markets – froze HOOD’s holding in mid-November, shortly after FTX and Alameda Research filed for bankruptcy protection. The reason was that SBF allegedly tried to sell the shares through the Signal app before FTX filed for bankruptcy. On the other hand, SBF denies any fraud attempt with the shares and also said that it did not intend to sell the papers.
No takeover agreement
FTX rapidly expanded its presence in the first half of 2022, acquiring several cryptocurrency companies. Some reports suggested that the platform’s next target would be Robinhood, which explains the acquisition of the shares. While SBF said in the following days that it likes the exchange’s app, he pointed out that FTX had no plans to actually buy it: “I’ve always been impressed with the businesses that Vlad and his team have built. That said, there are no active M&A talks with Robinhood.”
