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BlockFi sues former FTX CEO over multimillion-dollar guarantee, according to a report

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Key facts:
  • Bankaman Fried failed to comply with a payment agreement with BlockFi.

  • BlockFi now holds 7.6 percent of Robinhood’s common stock.

Yesterday, shortly after filing for bankruptcy, bitcoin (BTC) and other cryptocurrency investment and lending platform BlockFi sued Sam Bankman Fried, former CEO of FTX, a stock exchange that has been under bankruptcy protection in the United States since November 11.

The question brought to you by BlockFi, claims shares in cryptocurrency trading platform Robinhood which had been pledged to it by Bankman Fried through Emergent Fidelity Technologies, owned by the founder of FTX.

On November 9, BlockFi and Emergent Fidelity Technologies reached an agreement to guarantee a payment, the amount of which was not disclosed, from Alameda Research, which would act as the borrower.

However, in the face of the breach of contract. BlockFi sought to recover the guarantee set up by the former CEO of FTX.

This collateral was approximately 56.2 million shares, or 7.6 percent of Robinhood’s Class A common stock, held by Bankman Fried, according to a document filed with the U.S. Securities and Exchange Commission (SEC).

In addition to Emergent Fidelity Technologies, the complaint names ED&F Man Capital Markets. These companies, also owned by FTX’s founder, according to the indictment, failed to properly negotiate assets assets in question, as detailed in the documents disclosed by the Financial Times.

At the time of writing, the total number of shares claimed by BlockFi reach a value of more than $514 billion

Apparently, it happened that-in an attempt to raise funds before the collapse of FTX – Bankman Fried put his Robinhood shares up for sale. According to the media’s findings, which cites two people familiar with the matter, he knew he had an outstanding collateral agreement with BlockFi.

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