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    Home»News»BlockFi Sues SBF Over Robinhood Shares Worth $275M
    News

    BlockFi Sues SBF Over Robinhood Shares Worth $275M

    Dren.HBy Dren.HNovember 29, 2022Updated:November 29, 20222 Mins Read
    BlockFi Sues SBF for Robinhood Shares Used as Collateral
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    After filing for bankruptcy, BlockFi sues SBF for using Robinhood shares as collateral for a loan that FTX received.

    BlockFi is the most recent crypto lender that filed for Chapter 11 bankruptcy, given the recent market turmoil caused by FTX’s collapse.

    The ripple effect of crypto firms continues, with many exchanges and crypto-related projects bankrupting. The most recent addition to the list is BlockFi. 

    BlockFi officially files for Chapter 11 bankruptcy. It seems like the ripple effect is still active!#BlockFi #FTXbankruptcy #BlockFiBankrupt https://t.co/G9uDaEw1P2

    — Granit Academy (We're hiring) (@granitacademy) November 28, 2022

    Simultaneously, BlockFi also sued Sam Bankman-Fried (SBF), the founder of FTX. This comes after reports show that SBF’s Emergent Fidelity Technologies used Robinhood (HOOD) shares as collateral to get a loan worth $275 million from BlockFi.

    However, desperate to raise money to avoid bankruptcy, SBF tried to sell his Robinhood shares, despite having them as collateral for the loan from BlockFi.

    Because of these events, many are questioning SEC’s involvement with BlockFi. SEC sued BlockFi for $100 million back in February of this year. There is an estimated $30 million still unpaid by BlockFi now that the latter filed for bankruptcy. However, nothing seems to be registered. Hence, users are wondering where the money is when SEC opted to “protect” retail investors. The truth, however, is quite different. Given that Gary Gensler is tied with SBF, the crypto community is now wondering how SEC is going to protect investors when they were the ones supposed to overlook all these deals, including the BlockFi loan to FTX.

    Another SEC “regulation by enforcement” success story.

    Months after $100M BlockFi/SEC deal BlockFi in b/cy. $275M loan outstanding to FTX from BlockFi. Unknown amounts owed to BlockFi from FTX. Nothing ever registered. Fines paid? With whose money? Consumers decimated. https://t.co/XWflfRDIMk

    — Stuart Alderoty (@s_alderoty) November 28, 2022

    Hence, BlockFi sued SBF and FTX on the very same day BlockFi filed for bankruptcy.

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