The Sam Bankman-Fried-owned business that holds millions of shares in Robinhood has filed for bankruptcy.
The bankruptcy filing by Emergent Fidelity Technologies, reported Saturday (Feb. 4) by Bloomberg News, is happening amid a larger court battle over who should own the stock in the wake of the downfall of FTX Group, the crypto exchange founded by Bankman-Fried.
The 55 million shares of the financial trading platform — worth more than $590 million — were seized by federal prosecutors last month, although multiple parties claim ownership of them: The U.S. Justice Department, Emergent, crypto lender BlockFi, and Bankman-Fried himself.
The Bloomberg report notes that the bankruptcy filing gives Emergent and its liquidators breathing room.
Those liquidators’ “duties are to the debtor’s creditors, whoever those creditors may be,” Angela Barkhouse, one of the liquidators, said in a court filing, per Bloomberg.
“Given the many parties claiming to be creditors or outright owners of the debtor’s assets in proceedings in the U.S., the JPLs [joint provisional…