Another Sam Bankman-Fried Company Files For Bankruptcy!

FTXfounder of Sam Bankman-Fried and former manager Gary Wang co-founded by Emergent Fidelity Technologiesfiled for Chapter 11 bankruptcy protection late Friday.

Sam Bankman-Fried’s Emergent Fidelity Technologies Company Files for Bankruptcy

Emergent owned 56 million shares of online brokerage Robinhood.

Emergent Fidelity was the company that held 56 million shares of Robinhood Markets (HOOD), an asset that has quickly become the subject of interest among many companies for the value it can bring to FTX creditors.

The shares were also pledged as collateral to bankrupt crypto lender BlockFi, which filed its own claim last year.

Bankman-Fried argued that he should keep control of the shares. However, federal officials moved in January to seize control of the assets.

At last closing price, 56 million shares of Robinhood are valued at more than $600 million. Bloomberg reports that the only other asset Emergent Fidelity has is $20.7 million in cash.

Bankman-Fried Emergent owns 90% of Fidelity, while Wang, co-founder of FTX, owns the remaining 10%.

According to court documents recently released to the media, if the SBF is convicted of fraud, its additional assets worth approximately $700 million will be confiscated.

Federal Prosecutor Damian Williams announced in his document that he had identified 10 accounts belonging to Bankman-Fried, consisting of shares, crypto and cash.

Most of SBF’s said assets are in the well-known broker Robinhood. The market value of 55 million shares is approximately $525 million.

*Not investment advice.

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