New Move by Sam Bankman-Fried: He Takes Court for This Company!

FTXco-founder of Sam Bankman-Friedbrokerage firm of debtors RobinhoodHe went to court to prevent them from seizing control of his approximately $450 million stake in .

FTX founder Sam Bankman-Fried Files Court for Robinhood Shares

According to the court file, the bankrupt cryptocurrency Attorneys for the stock exchange boss argued that the shares do not belong to any of the FTX-related entities currently in bankruptcy proceedings and that Bankman-Fried needed the money to finance his legal expenses.

FTX, its sister hedge fund Alameda Research, and other related firms, now in bankruptcy and under the control of court-appointed liquidators, are seeking access to whatever assets they can find, including company shares, to repay FTX’s nearly 1 million creditors.

In a lawsuit filed by an FTX creditor for bankrupt crypto lender BlockFi, control of the shares was sought by the US Department of Justice.

Bankman-Fried and FTX co-founder Gary Wang bought 56.2 million shares in Robinhood through special-purpose vehicle Emergent Fidelity Technology. The petition states that the two men borrowed money through promissory notes to purchase the shares from Alameda.

“FTX Borrowers are attempting to disregard the separate existence of a company that is not a party to this lawsuit and mortgage hundreds of millions of dollars in assets to which they have no legal claims,” Bankman-Fried’s petition said.

The petition states that Bankman-Fried relied on her stake in Robinhood to fund her criminal defense. “Deducting the costs necessary for an adequate criminal defense may constitute irreparable harm,” it said.

*Not investment advice.