BlockFi Sues FTX's SBF over Shares in Robinhood

Crypto lending platform BlockFi has filed a lawsuit against Sam Bankman-Fried’s holding company Emergent Fidelity Technologies seeking his shares in Robinhood that were pledged as collateral earlier in November.

As per the filing, BlockFi is demanding Emergent turnover collateral as part of a Nov. 9 pledge agreement that saw Emergent agree to a payment schedule with BlockFi that it has allegedly failed to pay. BlockFi names the collateral as “including certain shares of common stock.” But in the days leading up to the Nov. 11 bankruptcy filing, SBF had been privately trying to sell Robinhood stock via the secure messaging app Signal.

In May, Bankman-Fried acquired a 7.6% stake in the online brokerage firm Robinhood, buying a total of $648 million in Robinhood shares through his Emergent investment company.