Sam Bankman-Fried said he received a loan from his quantitative trading firm Alameda Research to facilitate the purchase of his stake in US stock brokerage Robinhood Markets. This development involving the former FTX CEO comes a week after he was released on $250 million bail.
$546 million loan from Alameda Research
According to a sworn statement Filing in the Antigua and Barbuda High Court Dec. 12, Bankman-Fried revealed that he and FTX co-founder Gary Wang had withdrawn more than $546 million from subsidiary Alameda Research through four IOUs.
The loan was taken out earlier this year in April and May and was used to set up Emergent Fidelity Technologies Ltd, the front company of SBF incorporated in Antigua. According to court documents, Sam Bankman-Fried was awarded $316.6 million on April 30, while Gary Wang was awarded $35.1 million. This was followed by two more loans made on May 15, worth $175 million and $19.4 million, sent to SBF.
Emergent Fidelity Technologies Ltd proceeded with a $56 million purchase of Robinhood Markets in May 2022. This transaction gave the disgraced head of FTX a 7.6% stake in the brokerage firm.
Battle for Robinhood bet heats up
The news of the loan to SBF and its partner has sparked an ongoing debate. legal battle for ownership of the Robinhood stock in question. Ownership of this $546 million stake was claimed by Sam Bankman-Fried, BlockFi and Yonathan Ben Shimon, an FTX lender appointed in bankruptcy in Antigua.
Bankrupt crypto lender BlockFi was bailed out by FTX earlier this year with a $400 million line of credit. the company had Ham in court that the shares in question were used as collateral by Alameda Research to obtain a loan from BlockFi. This argument was used by the bankrupt cryptocurrency lender to claim ownership of Robinhood stock.
US Department of Justice launches criminal investigation into FTX Hack
FTX’s legal troubles appear to be mounting as the bankrupt cryptocurrency exchange now faces a criminal investigation into its alleged hack last month. A report of Bloomberg quoted a person with knowledge of the matter, who revealed that the Justice Department is investigating the hack that occurred on Nov. 12. This investigation is reportedly separate from the fraud allegations SBF is facing.
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