SBF requests court to stop seizure of its $400 million Robinhood shares
According to legal documents, the SBF legal team has requested the court to prohibit the bankruptcy reorganization team of FTX from taking any debt collection actions against FTX prior to the bankruptcy.
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According to legal documents, SBF's legal team has requested the court to prohibit FTX's bankruptcy restructuring team from pursuing any debt recovery actions related to FTX's pre-bankruptcy.
It points out that FTX's restructuring team is attempting to characterize their request to freeze the equity as a reasonable bankruptcy procedure, but in reality, it is far from routine, as the restructuring team disregards that the Robinhood shares are held by the independent company Emergent and do not belong to any entities involving Alameda or FTX.
The lawyers emphasize that the restructuring team has no legitimate claim to the seized Robinhood shares and argue that defining all matters involving SBF as fraud and embezzlement is unreasonable.
The document mentions that SBF is facing potential criminal liability and requires funds to pay for criminal defense costs, warning of irreparable consequences if economic support is lost.
Previously reported, the $440 million worth of Robinhood shares are caught in a three-way dispute among BlockFi, FTX, and SBF, originally owned by Emergent Fidelity Technologies Ltd., with SBF and FTX co-founder Gary Wang holding 90% and 10% of the company, respectively.
Initially, SBF and Gary Wang borrowed $546 million from Alameda through a promissory note to purchase 56.27 million shares of Robinhood HOOD under the name of Emergent, representing approximately 7.6% of Robinhood's shares.