Insolvent BlockFi Slapped Sam Bankman-Fried With a Lawsuit

November 29, 2022

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Insolvent BlockFi Slapped Sam Bankman-Fried With a Lawsuit

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Bankrupt crypto lender BlockFi has slapped Sam Bankman-Fried’s holding company Emergent Fidelity Technologies with a lawsuit as per a new filing on November 28.

According to the lawsuit filed at US Bankruptcy Court for the District of New Jersey, insolvent BlockFi is demanding the Bankman-Fried shares in Robinhood, a California-based financial services company.

The suit came hours after BlockFi filed for creditors protection in the same court.

The bankrupt BlockFi in the suit is seeking Emergent turnover of collateral as part of the agreement on November 9 which Emergent agreed to a payment schedule with BlockFi and has allegedly failed to meet up with the agreement.

Meanwhile earlier this year, the former CEO and founder of the bankrupt FTX exchange bought a 7.6% stake in Robinhood which during the time amounted to $648 million through Bankman-Fried Emergent investment company.

BlockFi on November 28, joined the list of crypto firms that filed for creditors protection due to FTX collapse. The lending firm had once denied holding the majority of its assets in the insolvent FTX, although it acknowledged “significant exposure”.

According to the Monday bankruptcy filing, the firm said it has assets between $ 1 billion and $ 10 billion with liabilities in the same range as well as over 100,000 creditors.

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