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Robinhood shares claimed by BlockFi and FTX may move to a neutral broker

The extremely disputed Robinhood shares claimed by each BlockFi and FTX  is likely to be transferred to a impartial dealer or an escrow account whereas the courts decide the rightful proprietor.

Digital asset lender BlockFi not too long ago sued former FTX CEO Sam Bankman-Fried to say the shares that had been supposedly pledged as collateral for the greater than $600 million that BlockFi loaned to Alameda Analysis.

The 56 million Robinhood Markets shares, that are at present frozen, are value round $450 million. They’re owned by Bankman-Fried’s holding firm Emergent Constancy Applied sciences, which was fashioned in Antigua and Barbuda and held by a brokerage firm referred to as Marex Capital Markets. In response to a lawyer from the brokerage agency, the corporate would proceed to carry the shares till a court docket order is issued.

In a brand new replace to the dispute, chapter Choose Michael Kaplan has stated that on Jan. 9, he would evaluate whether or not the shares needs to be transferred to a impartial dealer below the jurisdiction of the US, following a request from BlockFi. Kaplan famous that he can be contemplating questions on who owns the shares after the attorneys have extra time to research competing claims.

Associated: Chapter court docket advised FTX and Alameda they owe BlockFi $1B, however it’s difficult

On Dec. 23, FTX requested the court docket to cease BlockFi from claiming the Robinhood shares. The corporate argued that by protecting the shares the place they’re, the claimants — which embrace BlockFi, Bankman-Fried and FTX creditor Yonathan Ben Shimon — can “take part in an orderly claims course of.” FTX requested an extension of the property’ “keep” on their facet of the fence if not authorised

In the meantime, an affidavit filed by the previous FTX CEO revealed that he borrowed $546 million from Alameda to buy the extremely sought-after Robinhood shares. The funds had been lent by Alameda Analysis to each Bankman-Fried and FTX co-founder Gary Wang to make the acquisition.

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