As revealed in court documents, Sam Bankman-Fried and Gary Wang borrowed over $546 million from Alameda Research to acquire a 7.6% stake in Robinhood from Alameda Research. FTX and BlockFi are both in bankruptcy. They claim that Alameda is owed the rights to the Robinhood shares due to the bank loan that was taken out by Alameda.
Bankman-Fried has been in a three-way battle to lay claim to the 56 million shares of Robinhood that might be worth over $440 million, and the affidavit shows that he is now attempting to apply his own spin on the situation. Crypto lender BlockFi, FTX Group and even Bankman-Fried have each attempted to file a claim for the shares.
The fact that Alameda borrowed money from FTX forms the basis for the fraud case against Bankman-Fried being brought in Manhattan federal court. It is not clear if the funds at issue in the bankruptcy dispute originated with FTX. It is uncertain who will ultimately end up with the Robinhood shares due to the complexity of the situation and each party’s claim to them.
