Controversy over Robinhood stock, SBF's parent company Emergent applies for Chapter 11 bankruptcy.

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SBF-Owned Company Emergent Files for Bankruptcy

SBF and FTX co-founder Gary Wang holds over 55 million shares of Robinhood stock through his holding company Emergent Fidelity Technologies, now valued at over $600 million.

Although SBF's lawyers have emphasized that the seizure of Robinhood stock is not a legitimate claim, and SBF needs this money to pay for legal fees in a criminal case, U.S. federal prosecutors decided to freeze these assets back in January.

However, SBF seems to be taking proactive steps. According to CoinDesk, he has filed for Chapter 11 bankruptcy for Emergent Fidelity Technologies, where he holds 90% of the shares, with Gary Wang owning the remaining 10%.

CoinDesk did not cite any documents in their report.

FTX Appoints Independent Examiner

The issue of whether FTX should appoint an independent examiner remains unresolved. The U.S. Trustee overseeing the FTX bankruptcy case has filed a motion requesting the appointment of an independent examiner.

The motion states:

The U.S. Trustee does not question the ability or integrity of John Ray, but his goals may not necessarily align with those of other interested parties. An independent examiner could play a truly neutral role in addressing all issues.

However, objections have been raised by the creditors' committee and the restructuring team, with the former believing that this move could lead to an additional expenditure of $50-100 million.

Currently, several state-level regulatory agencies in the U.S. have also expressed their support for appointing an examiner. According to previous reports, over a dozen state-level regulatory agencies have voiced their support, including those from California, Alaska, Florida, Kentucky, Hawaii, among others.