2 years ago
Bankrupt crypto lender BlockFi has asked the tribunal to disregard a bankruptcy lawsuit filed by Sam Bankman-Fried’s (SBF) Emergent Technology institution implicit a tussle to power 55 cardinal Robinhood shares.
Disgraced FTX laminitis SBF owned 90% of shares successful Emergent Technology — a institution helium co-founded with Gary Wang solely to acquisition Robinhood shares.
SBF reportedly utilized the Robinhood shares to unafraid a $600 cardinal indebtedness from BlockFi. Following FTX’s collapse, the Robinhood shares — worthy $455 cardinal — were seized by the U.S. government.
Emergent Technology filed for bankruptcy connected Feb. 3, claiming that the 55 cardinal Robinhood shares pledged to BlockFi belonged to its estate.
However, BlockFi filed a counter-motion connected Feb. 16, arguing that Emergent’s bankruptcy lawsuit was futile.
BlockFi argued that Emergent is ineligible for bankruptcy extortion nether the bankruptcy codification due to the fact that it has nary spot successful the United States.
“Emergent has nary employees, nary income, and nary business; its sole assets were shares successful Robinhood Markets Inc.”
BlockFi claimed that Emergent’s bankruptcy lawsuit was engineered to enrich its associated provisional liquidators — Angela Barkhouse and Toni Shukla — who are seeking to instrumentality implicit the Robinhood shares.
BlockFi has asked the U.S. bankruptcy tribunal to disregard Emergent’s bankruptcy lawsuit fixed that the institution has nary spot to suffice for bankruptcy protection.
The station BlockFi files to disregard SBF’s Emergent institution bankruptcy case appeared archetypal connected CryptoSlate.
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