BlockFi sues SBF and FTX for $275 million worth of Robinhood shares.

BlockFi is the latest cryptocurrency lender to file for Chapter 11 bankruptcy given the recent market turmoil caused by the collapse of FTX.

The ripple effect of cryptocurrency companies continues, with many cryptocurrency exchanges and projects going bankrupt. The latest addition to the list is BlockFi.

Simultaneously, BlockFi has also sued Sam Bankman-Fried (SBF), the founder of FTX. This comes after reports show that SBF’s Emergent Fidelity Technologies used Robinhood (HOOD) shares as collateral to secure a $275 million loan from BlockFi.

However, desperate to raise funds to avoid bankruptcy, SBF attempted to sell its Robinhood shares, even though they were used as collateral for the BlockFi loan.

Because of these events, many question the SEC’s involvement with BlockFi. The SEC sued BlockFi for $100 million in February of this year. It is estimated that BlockFi is still unpaid $30 million, now that it has filed for bankruptcy. However, nothing appears to be on record. This has users wondering where the money is when the SEC has chosen to “protect” retail investors. The truth, however, is very different. Given Gary Gensler’s connection to SBF, the cryptocurrency community is now wondering how the SEC is going to protect investors when they were the ones who were supposed to oversee all of these transactions, including BlockFi’s loan to FTX.

Thus, BlockFi sued SBF and FTX on the same day BlockFi filed for bankruptcy.