Cryptocurrency

SBF Took $546M Mortgage From Alameda to Purchase Robinhood Shares

FXT founder and former CEO Sam Bankman-Fried (SBF) borrowed over $546 million from his buying and selling home, Alameda Analysis, to buy a 7.6% stake in Robinhood earlier this yr.

In accordance with an affidavit filed within the Excessive Courtroom of Justice Antigua and Barbuda on December 12 earlier than the arrest of SBF, the previous billionaire teamed up with FTX co-founder Zixiao (Gary) Wang to borrow the funds. They have been used to help Emergent Constancy Applied sciences, one other FTX affiliate, to buy the 56 million HOODs in Could.

SBF Legally Owns 90% of the Robinhood Shares 

The mortgage was evidenced in 4 promissory notes, which revealed that SBF and Wang every borrowed roughly $317 million and $176 million from Alameda on April 30, 2022, and Could 15, 2022, respectively.

Bankman-Fried obtained a further $19 million from the agency on the identical day Wang took the mortgage, representing a complete of $554 million.

“To be able to capitalize Emergent Constancy Applied sciences so it might make the investments into Robinhood, Gary and I agreed to borrow funds from Alameda Analysis LTD,” reads the courtroom doc.

The funds have been then given to Alameda to assist its buy of the shares. Nevertheless, the buying and selling agency spent round $650 million to buy the stakes, and SBF claimed that the extra funding got here from Wang.

In accordance with the previous FTX CEO, Emergent doesn’t personal another belongings moreover the Robinhood shares on the time of buy.

The courtroom doc additionally revealed that Bankman-Fried owned 90% of the shares, whereas Wang had solely 10% of the belongings as a result of different contributions.

SBF, BlockFi, and Shimon Contest for Possession

The shares have been later utilized by SBF and Caroline Ellison, the previous CEO of Alameda Analysis, as a pledge to acquire a mortgage from the crypto lending firm BlockFi.

Curiously, three events are actually preventing for possession of the shares after FTX and BlockFi filed for chapter final month.

SBF, BlockFi, and Yonathan Ben Shimon, certainly one of FTX’s collectors, have filed separate authorized actions in numerous jurisdictions to assert the Robinhood stake.

Earlier this month, Bankman-Fried, presently underneath home arrest, filed a movement at a United States chapter courtroom searching for help to obtain the belongings now held by the brokerage firm ED&F Man Capital Markets (EDFM).

BlockFi, however, claims that the belongings belonged to it, noting that the stake was pledged to the corporate as collateral on November 9. On that word, the crypto lender sued Bankman-Fried, requesting that he honor the deal.

The final claimant, Yonathan Ben Shimon, an FTX creditor, alleged that the frequent stakes have been bought utilizing clients’ belongings, which have been a part of the bitcoins he deposited on the trade years earlier than the corporate’s unlucky finish.

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