Founder of defunct crypto exchange FTX, Sam Bankman-Fried has filed a motion seeking to block FTX debtors from taking control of his 56 million Robinhood shares. Earlier, US prosecutors announced to seize those Robinhood shares worth $450 million.
FTX co-founder SBF, who is currently under house arrest, has argued in a court filing that Robinhood shares do not belong to any of the FTX-related entities.
SBF needs money to fund his legal expenses, lawyers argue
SBF’s lawyers have argued in the court filing on Thursday that their client needs the money to fund his legal expenses. FTX and its trading arm Alameda Research are currently under court-appointed liquidators that are seeking any assets they can find to repay FTX customers and investors.
Earlier, a US Department of Justice prosecutor said in a court hearing that they are moving ahead to seize SBF’s stake worth $450 million. What DoJ plans to do with Robinhood shares will be decided in a future hearing.
FTX investors and customers seek claim on Robinhood shares
BlockFi, a crypto lending firm that FTX promised to bail out with a $250 million agreement, filed for bankruptcy. BlockFi had massive exposure to the failed crypto exchange. The crypto leading firm sought claims on SBF’s Robinhood shares in its bankruptcy filing.
Earlier, FTX customers also filed a class action lawsuit against the exchange and SBF, alleging they deserve all the assets that are left with FTX. In its bankruptcy filing, FTX had revealed that it has over 1 million creditors.
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