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The commission–free trade provider Robinhood is amidst the whirl of disputes all around but now the tide is likely to go down for some time. BlockFi and FTX were claiming the shares earlier that now seems to get handed over to a neutral broker or to put within an escrow account. The authority to determine the rightful ownership of these assets would still belong to the courts.
Robinhood Markets’ 56 million shares worth about 450 million USD have been frozen for now. Emergent Fidelity Technologies, another holding company under FTX founder Sam Bankman-Fried’s ownership and the broker firm Marex Capital Markets was having the holdings.
The brokerage firm’s lawyer stated that it would have the shares under its holding till the time of issuance of a court order.
Crypto lender BlockFi recently went on to file lawsuit against Bankman-Fried claiming that Robinhood shares were put as collateral against the loan of over 600 million USD which the lending firm avail to his trading firm Alameda Research.
The bankruptcy Judge Michaell Kaplan, according to the new update, stated to review the transfer of shares to a neutral broker compulsorily under the United States jurisdiction. This move came after the request of BlockFi.
In addition, the judge said to consider the questions about the ownership of shares following the lawyers would get more time to look over the claims from other sides.
The Bahamian crypto exchange asked the court on December 23 to stop the crypto asset lending firm claiming the ownership of Robinhoood shares.
The claimants, which include BlockFi, Bankman-Fried, and FTX creditor Yonathan Ben Shimon, can “participate in an orderly claims process” if the shares are kept in their current location, the company claimed. If not granted, FTX asked for an extension of the assets’ “stay” on their side of the barrier.
In the meantime, the former FTX CEO’s affidavit showed that he borrowed $546 million from Alameda to buy the highly prized Robinhood shares. Bankman-Fried and co-founder of FTX Gary Wang were both lent money by Alameda Research to make the transaction.
Noteworthy is that SBF got arrested from the Bahamas and extradited to the United States. In addition, after filing for a 250 million USD bail bond, he was released on bail and living at his parents’ place.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
