Former FTX CEO Sam Bankman-Fried borrowed hundreds of millions of dollars from Alameda Research to buy stock in trading app Robinhood Markets, court documents show.
FTX CEO SBF Bought Robinhood Stock with Hundreds of Million Dollars Borrowed from Alameda
Prior to his arrest, Bankman-Fried said in affidavit that he and FTX co-founder Gary Wang borrowed more than $546 million in promissory notes from Alameda in April and May.
They used this money to finance front company Emergent Fidelity Technologies Ltd, which bought a 7.6% stake in Robinhood in May.
After the collapse of the company cryptocurrency Credit institution BlockFi, FTX Group, and Bankman-Fried itself are trying to lay claim to shares that could be worth over $440 million.
Crypto lending firm BlockFi, which has filed for bankruptcy like FTX, claimed in a court document that it owns the rights to Robinhood shares due to a deal Bankman-Fried struck in early November.
The shares were pledged as collateral against a loan originally taken out by Alameda Research, whose funds were used to purchase the shares, according to Tuesday’s court filing.
Crypto exchange FTX filed for bankruptcy in November after it was revealed that Alameda, a hedge fund also owned by Bankman-Fried, is largely backed by FTT tokens, aka FTX’s digital assets from scratch.
However, the first wick regarding the collapse of FTX was the sale statement of Binance CEO Chanpeng Zhao, who had a large number of FTT tokens.
*Not investment advice.
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