TechFlow news — Cryptocurrency lending firm BlockFi has filed a lawsuit against FTX founder Sam Bankman-Fried (SBF), demanding he surrender Robinhood (HOOD) shares that were pledged as collateral for loans.
The complaint states that on November 9, BlockFi entered into an agreement with Emergent to secure the payment obligations of an unnamed borrower by pledging certain common stocks as collateral. However, in the days leading up to its bankruptcy filing on November 11, SBF privately attempted to sell Robinhood shares using the secure messaging app Signal.
Legal documents reveal that the "unnamed borrower" was actually Alameda Research. BlockFi claims Alameda defaulted on a $680 million secured loan in early November.
BlockFi also named ED&F Man Capital Markets as Emergent's broker in the lawsuit, alleging that the brokerage "refused to transfer the collateral to BlockFi."
As previously reported, BlockFi and eight of its subsidiaries have officially filed for bankruptcy restructuring in a New Jersey federal bankruptcy court, with customer claims to be handled under Chapter 11 of the U.S. Bankruptcy Code. BlockFi will focus on recovering all debts owed to it by its counterparties, including FTX and related corporate entities. Due to FTX’s recent collapse and its ongoing bankruptcy proceedings, the company expects recovery from FTX will be delayed.
Additionally, the filings show that BlockFi has over 100,000 creditors, with estimated assets and liabilities both ranging between $1 billion and $10 billion. BlockFi currently still holds $256.9 million in cash, and platform services remain suspended.Original link
