On Tuesday, the Eastern Caribbean Supreme Court released documents, which disclosed that the former chief executive and former chief technology officer of FTX took loans from its sister trading firm, Alameda Research.
The documents disclosed that Sam Bankman-Fried as well as Gary Wang had borrowed money from Alameda for buying stock in Robinhood, the publicly traded exchange.
However, it appears that BlockFi, the crypto lending platform, is contending the ownership of the block of Robinhood shares in federal court.
The crypto lending firm claims that the Robinhood shares had been promised to them by Sam Bankman-Fried.
Bankman-Fried, on the other hand, stated in an affidavit that he had formed a new company by the name of Emergent with Wang, which had bought Robinhood Markets Inc.’s shares worth $546.4 million.
In a filing, Bankman-Fried revealed that both he and Gary had borrowed money from Alameda Research for buying the shares and the amounts were $491,743,563.39 and $54,638,173.71.
There are promissory notes that serve as evidence of the funds, which had been capitalized as the working capital of Emergent so that it could acquire shares in Robinhood.
According to the disgraced crypto mogul, the two had taken out a total of four loans for funding the share purchase from Alameda Research.
On April 30th this year, they had first taken a loan of $316,667,182.50 and also $35,185,242.50. The next two loans had been obtained on May 15th, which were for $175,076,380.89 and $19,452,931.21, respectively.
Bankman-Fried has clarified in the affidavit that they did not take the entire sum all at the same time. Instead, the amounts had been paid out in tranches before and the dates that had been mentioned.
He elaborated that this was important because it would have an impact on the calculation of the total value of Robinhood shares that were purchased.
It should be noted that the FTX co-founder has had eight criminal charges filed against him, including that of money laundering and bank and wire fraud.
Bankman-Fried has been accused by regulatory authorities of stealing customer funds that were deposited on FTX for covering trades carried out by Alameda Research.
The matter has become more complicated because BlockFi is now claiming that SBF had promised his Robinhood shares to the crypto lender.
It had been reported in November that BlockFi had filed a lawsuit against the ex-FTX CEO for getting the shares of Robinhood that he had allegedly pledged to the now-bankrupt crypto lender.
BlockFi dictated that the shares had been promised as collateral earlier in November. A filing with the US Securities and Exchange Commission (SEC) shows that Bankman-Fried had bought his Robinhood stake of 7.6% back in May.
According to BlockFi, Bankman-Fried had promised the crypto lender the shares he had purchased as collateral to help the company in dealing with its liquidity issues.
In the lawsuit they have filed, BlockFi says that Emergent has not lived up to the pledge agreement and has failed to fulfill its obligations.