Emergent Fidelity Technologies, a company co- established by FTX Trading Ltd founder Sam Bankman-Fried and previous executive Gary Wang, filed for Chapter 11 bankruptcy protection late Friday.
Emergent Fidelity was the company which held 56 Million shares of Robinhood Markets (HOOD) stock, an investment that quickly became a subject of key interest between plenty of corporations for the value it can potentially attract FTX Trading Ltd creditors. The shares were likewise pledged as collateral to bankrupt cryptocurrency lender BlockFi, which placed its own claim last year.
Bankman-Fried has argued he should retain control of the shares. Nevertheless, federal officials moved to seize control of the assets in January.
Those 56 Million shares of Robinhood are worth greater than $600 Million at today’s closing price. Bloomberg informed the only other investment owned by Emergent Fidelity was $20.7 Million in cash.
Bankman-Fried is the owner of 90 percent of Emergent Fidelity, and with FTX Trading Ltd co- founder Wang owning the remaining 10%.
Emergent Fidelity’s bankruptcy filing could not instantly be obtained. It is not clear what debts Emergent is claiming at this time.
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