Bankrupt Crypto Firm BlockFi Sues FTX Founder Sam Bankman-Fried For $580 Million

cryptonews.com:

Bankrupt crypto lender BlockFi is suing FTX's founder Sam Bankman-Fried to seize shares in the US trading platform Robinhood, allegedly pledged as collateral by the former FTX CEO just days before the exchange notoriously imploded.

FTX declared bankruptcy on November 11, and BlockFi did so this Monday. The latter said that its exposure to the former led to its fall, adding that FTX's parent company Alameda Research had defaulted on some $680 million of collateralized loans in early November.

Soon after filing for bankruptcy protection, BlockFi also filed a lawsuit. 

The lender's document, submitted to a US bankruptcy court, stated that BlockFi brought a complaint against Emergent Fidelity Technologies and ED&F Man Capital Markets, stating that,

"BlockFi seeks to enforce the terms of a pledge agreement and to recover collateral that is property of these bankruptcy estates." 

BlockFi requested a court order directing 

"Emergent and/or EDFM to immediately transfer the Collateral to a neutral party such as a neutral broker or escrow supervised by the Court, and ultimately to BlockFi."

The Financial Times reported, citing loan documents it claims to have seen, that this collateral is Bankman-Fried’s stake in Robinhood, adding that the FTX founder bought 7.6% of the trading platform earlier this year.

Per data from Yahoo Finance, Robinhood has 835.68 million shares. 7.6% of that would be 63.51 million, which is worth some $583.67 million at the current price of $9.19.

BlockFi claims in the document that on November 9, it entered into an agreement with Emergent to guarantee the payment obligations of an unnamed borrower - reportedly identified by legal correspondence as Alameda - by pledging certain “common stock” as security. 

Emergent