New evidence against FTX’s former CEO Sam Bankman-Fried has shown that he bought Robinhood shares using funds borrowed from Alameda Research, a company he also founded.
Information in court documents shows that the Bankman-Fried borrowed Alameda Research’s money to buy Robinhood shares. SBF said via a court affidavit he took over $546M in loan from Alameda research to invest in Robinhood alongside the FTX co-founder Gary Wang.
Bankman-Fried explained that they took the loan via promissory notes in April and May 2022 and used it to capitalize Emergent FIdelity Technologies ltd. Their new company then went on to buy a 7.6% stake in Robinhood.
FTX’s fight for Robinhood shares continues
Bankman-Fried’s affidavit provides new evidence, which serves as a curve ball amid an ongoing tussle to claim the Robinhood shares. The stock is contended by crypto lender Blockfi, SBF, and FTX group, all trying to repossess them. These 56 million shares are currently worth well over $440M.
Crypto lender Blockfi claims they own the shares due to a deal they struck with bank man fried in November. However, it has already filed for bankruptcy, like the FTX group. The crypto lender claims that the Robinhood shares were put up as collateral by Alameda Research for a loan it had taken from them.
However, the rabbit hole keeps getting deeper. The SEC claims that FTX had asked its users to send money to an electronics retailer, North Dimension, with a website full of misspelled words and ridiculous processes. The funds were then used for Alameda’s trading activities.
Now, Bankman Fried is still with his parents, awaiting trial after being granted a record $250M bail following extradition to the US from the Bahamas.