BlockFi files to dismiss SBF’s Emergent company bankruptcy case

Bankrupt crypto lender BlockFi has asked the court to dismiss a bankruptcy case filed by Sam Bankman-Fried’s (SBF) Emergent Technology company over a tussle to control 55 million Robinhood shares.

Disgraced FTX founder SBF owned 90% of shares in Emergent Technology — a company he co-founded with Gary Wang solely to purchase Robinhood shares.

SBF reportedly used the Robinhood shares to secure a $600 million loan from BlockFi. Following FTX’s collapse, the Robinhood shares — worth $455 million — were seized by the U.S. government.

Emergent Technology filed for bankruptcy on Feb. 3, claiming that the 55 million Robinhood shares pledged to BlockFi belonged to its estate.

However, BlockFi filed a counter-motion on Feb. 16, arguing that Emergent’s bankruptcy case was futile.

BlockFi argued that Emergent is ineligible for bankruptcy protection under the bankruptcy code because it has no property in the United  States.

“Emergent has no employees, no income, and no business; its sole assets were shares in Robinhood Markets Inc.”

BlockFi claimed that Emergent’s bankruptcy case was engineered to enrich its joint provisional liquidators — Angela Barkhouse and Toni Shukla — who are seeking to take over the Robinhood shares.

BlockFi has asked the U.S. bankruptcy court to dismiss Emergent’s bankruptcy case given that the company has no property to qualify for bankruptcy protection.

Posted In: , , Bankruptcy
Bookmark (0)
ClosePlease loginn

Related Posts

Rocket League world champions TeamBDS partners with Xborg for web3 fan activations

Rocket League world champions TeamBDS partners with Xborg for web3 fan activations

Blockchain meets esports as XBorg Partners with Team BDS

Bookmark (0)
ClosePlease loginn
Citigroup believes CBDCs will lead the way to mass adoption

Citigroup believes CBDCs will lead the way to mass adoption

Citi said that mass adoption will happen when more than a billion people are using blockchain technology without knowing they’re using it.

Bookmark (0)
ClosePlease loginn
SBF pleads not guilty to all 13 federal indictments

SBF pleads not guilty to all 13 federal indictments

Sam Bankman-Fried’s trial is set to begin in October. He is also facing civil charges filed by the SEC and the CFTC.

Bookmark (0)
ClosePlease loginn
Cold wallet Ledger raises $108M as self-custody wallets gain popularity

Cold wallet Ledger raises $108M as self-custody wallets gain popularity

Hardware wallet ledger raised another $385 million in 2021, and its current valuation sits at $1.41 billion.

Bookmark (0)
ClosePlease loginn
Hong Kong signals licensing over 8 crypto companies by year-end

Hong Kong signals licensing over 8 crypto companies by year-end

Licenses will be issued under Hong Kong’s new crypto licensing regime, composed to support crypto firms looking to set up shop in the city.

Bookmark (0)
ClosePlease loginn
Coinbase, Kraken plan to continue operating in Canada as regulatory rules change

Coinbase, Kraken plan to continue operating in Canada as regulatory rules change

Kraken and Coinbase are among the first exchanges to officially declare their intent to remain in Canada.

Bookmark (0)
ClosePlease loginn

Leave a Reply

Your email address will not be published. Required fields are marked *