On January 9th, Judge Michael Kaplan will determine if Robinhood stakes will be transferred to a neutral broker or escrow account.
The bankruptcy Judge Michael Kaplan is reportedly considering moving Robinhood Markets shares, claimed by bankrupt crypto exchange FTX and crypto lender BlockFi, to a neutral broker.
According to the Wall Street Journal news report, the bankruptcy Judge overseeing the BlockFi bankruptcy case will review the matter on January 9th.
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The news was revealed on December 28th during the BlockFi bankruptcy case hearing. The judge claimed that 56 million Robinhood Markets shares can be moved to a neutral broker or escrow account “until the rightful owner is determined.”
On top of that, Judge Michael Kaplan noted that he would work on determining who is the owner of stakes after lawyers have more time to inspect competitors' claims.
It is worth noting that the crypto lender filed for Chapter 11 bankruptcy protection on December 29th. On the same day, BlockFi sued Sam Bankman-Fried’s holding company Emergent Fidelity Technologies.
With the lawsuit against Emergent Fidelity Technologies, BlockFi aims to obtain Sam Bankman-Fried’s Robinhood shares that the FTX co-founder allegedly pledged as collateral at the beginning of November. At that time, shares were pledged as collateral for more than $600 million loan BlockFi gave to Alameda Research.
On December 23rd, bankrupt crypto exchange FTX asked a judge's help to prevent BlockFi from claiming Robinhood shares. According to FTX, 56 million Robinhood shares belong to Alameda Research. Moreover, the bankrupt crypto exchange claimed that all shares owned by FTX-related companies should remain intact pending investigations into claims to their ownership.
Nevertheless, on December 27th, former FTX CEO and co-founder Sam Bankman-Fried’s (SBF) affidavit revealed that the man and FTX co-founder Zixiao “Gary” Wang took out loans from Alameda Research to fund Robinhood shares acquisition. In total, Gary borrowed around $35 million, whereas SBF borrowed $511 million.
