According to the most recent document filed in court, insolvent FTX founder Sam Bankman-Fried, often known as SBF, is attempting to hold on to 56 million Robinhood shares that are worth $450 million.
On the 22nd of December, 2022, FTX, which was then headed by John Ray and is currently led by John Ray, declared that the shares were only nominally owned by Emergent Fidelity and that they should be frozen until they could be divided fairly among FTX creditors.
In his complaint, Bankman-Fried challenges the validity of this idea by asserting that he and Gary Wang took out four separate promissory notes from Alameda Research in order to get the financing necessary for Emergent to acquire the Robinhood Shares.
“The FTX Debtors are aware of the existence of these promissory notes but failed to reference them in the Stay Motion,” SBF notes.
The court filing argues that Bankman-Fried has not been found criminally or civilly liable for fraud and that it is wrong for the FTX debtors to simply urge the court to presume that everything Bankman-Fried has touched is fraudulent. In addition, the filing argues that Bankman-Fried has not been found liable for fraud in any civil or criminal proceeding.
It is also said that Bankman-Fried will not be able to have access to this property if it is detached from Emergent. This is due to the fact that part of these monies are required for Bankman-Fried to pay for his legal defense.
The filing adds “The FTX Debtors are not entitled to the relief sought in the Stay Motion because the Robinhood Shares are not the property of the estate, the FTX Debtors do not have a colorable claim to the shares, and the automatic stay should not be extended to cover the shares.”
Compiled by Coinbold
