56 Million of Robinhood Stock, once used as collateral for BlockFi, is currently under review

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BlockFi is in serious financial trouble due to a dispute over Robinhood stock, which Alameda used to secure loans totalling more than $600,000,000. According to the Wall Street Journal Judge Michael Kaplan, U.S. Bankruptcy Court, Trenton, N.J., has agreed to review a request by the crypto lender. He may transfer the disputed 56M Robinhood shares to a neutral account. However, the judge has yet to make a decision. BlockFi lawyer Richard Anigian said:
“These shares should not be sold.”
After the final decision, a ruling will be made in court in January 2023. If BlockFi’s request is successful, the shares will be held by a brokerage or escrow account until court proceedings determine who actually owns the disputed shares.Since early November, when FTX’s issues first surfaced, Robinhood’s stock had fallen by around 40%.Prior to the demise of FTX, the crypto exchange Sam Bankman-Fried created an organization owned by him called Markets Inc., allegedly established as collateral to BlockFi.FTX has asserted its own ownership rights over the Robinhood stock, which is held by an Antiguan firm backed by Bankman-Fried.According to recent court papers by BlockFi, Emergent Fidelity Technologies Ltd. provided the Robinhood shares to BlockFi as collateral for more than $600 million in loans that BlockFi had issued to Alameda Research, the trading company associated with FTX, days before FTX filed for Chapter 11 bankruptcy in November. FTX’s U.S. management disputed BlockFi’s assertion and claimed that Alameda is rightful owner. BlockFi requested additional time from liquidators from Antiguan to respond to BlockFi’s lawsuit. Matthew Ziegler, an Antiguan attorney, stated that their sole purpose is to protect Emergent’s assets, and to determine who should receive the Robinhood shares. We encourage you to do your own research before investing.Join us to keep track of news: https://linktr.ee/coincuWebsite: coincu.comHaroldCoincu NewsTags: AlamedaAntiguanBlockFiFTXMarkets Inc.Richard AnigianRobinhoodSam Bankman-Fried