The side effects of FTX’s collapse continue to linger. Most recently, cryptocurrency lender Block Fi has filed for chapter 11 bankruptcy protection.
After this application, the company FTXIt was learned that he filed a lawsuit against.
According to the Financial Times, a loan agreement was made between BlockFi and Emergent Fidelity Technologies (the brokerage company), and Emergent Fidelity pledged Robinhood securities belonging to an unnamed debtor in return for this loan. The supervision of these pledged shares was left to the intermediary company.
After this agreement made on November 9, it was learned that the real debtor was FTX founder SBF and Alameda.
Because it was known that SBF had $600 million worth of Robinhood shares. It was alleged that, under this loan agreement, SBF continued to sell and pledge its stocks as collateral instead of keeping it under surveillance.
He claims that despite being reported in writing on BlockFi, SBF and the brokerage firm failed to meet their obligations under the pledge agreement.
BlockFi plans to buy back the shares transferred to the bankruptcy desk under the pledge agreement.
BlockFi was also in a difficult situation after the Luna crisis and SBF gave the loan that saved BlockFi.
Considering that BlockFi gave this loan on November 9 (after the FTX crisis broke out) and its relations with SBF, it is considered that this loan agreement may be a collusive transaction. All eyes were on the court’s decision.
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