SBF Borrowed From Alameda for Robinhood Shares

T

o purchase Robinhood stocks, Sam Bankman-Fried from FTX borrowed money from Alameda and provided the same shares as collateral for the loan.

Hundreds of millions of U.S dollars were loaned to ex-FTX boss Sam Bankman-Fried by Alameda Research for him to acquire his stake in the trading platform Robinhood Markets (HOOD), as stated in legal papers.

In a statement made to the Caribbean court prior to his apprehension, Bankman-Fried stated that he and his FTX co-founder Gary Wang borrowed over $546 million from Alameda through promissory notes in April and May. They used those funds to fund Emergent Fidelity Technologies Ltd., the shell organization which bought 7.6% share of Robinhood during May.

A new obstacle in the three-way competition to secure 56 million shares of Robinhood has been presented with this affidavit. Crypto lender BlockFi, FTX Group, and Bankman-Fried are all striving for these stocks that could potentially be valued at over $440 million!

BlockFi, a crypto lender that has also filed for bankruptcy like FTX, claimed in their legal papers that they had the right to the Robinhood shares due to an arrangement Bankman-Fried made back in November. These same stocks were used as security against a loan given out by Alameda Research—the agency whose money was originally utilized to purchase those very same stocks. This information appeared on Tuesday's court filing.

In November, FTX, a crypto exchange firm, filed for bankruptcy after it was revealed that Alameda (a hedge fund owned by Bankman-Fried) got its major support from FTT tokens. These digital assets were created out of thin air by FTX itself.

Mike

An editor at Coincrop

View articles

Mike is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely putting his latest car project back together.