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)

Related Posts

Europe is getting its first ETP based on a Morgan Stanley index

Europe is getting its first ETP based on a Morgan Stanley index

The ETP will be based on a new MSCI index tracking 20 leading digital assets — set to launch on Germany’s Deutsche Börse XETRA in April.

Bookmark (0)
Bitcoin reclaims $28,000 despite regulatory woes from Binance lawsuit

Bitcoin reclaims $28,000 despite regulatory woes from Binance lawsuit

Bitcoin recovers recent milestone — surpassing the $28,000 mark to move above its pre-Binance lawsuit price.

Bookmark (0)
Circle’s USDC to launch on Cosmos

Circle’s USDC to launch on Cosmos

This is the first time since the collapse of Terra’s UST that Cosmos will have a native stablecoin issued on the blockchain.

Bookmark (0)
SBF charged with bribing Chinese government officials with $40M

SBF charged with bribing Chinese government officials with $40M

SBF reportedly bribed Chinese government officials with over $40 million to regain access Alameda’s trading accounts worth over $1 billion.

Bookmark (0)
Zero-knowledge proofs now live on Bitcoin

Zero-knowledge proofs now live on Bitcoin

Competition heats up as developers race to optimize and scale zero-knowledge proofs —with ZeroSync and StarkWare leading the way.

Bookmark (0)

Orderly Network secures funding from India’s CoinDCX Ventures

Bookmark (0)

Leave a Reply

Your email address will not be published.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