• Former FTX CEO Sam Bankman-Fried and ex-FTX CTO Gary Wang took out four loans from Alameda Research totaling $546.4 million to acquire shares in Robinhood Markets Inc. 

• According to the affidavit, the duo took “$316,667,182.50 and $35,185,242.50 on April 30, 2022, and $175,076,380.89 and $19,452,931.21 on May 15, 2022.”

Former FTX CEO Sam Bankman-Fried was recently arrested in the Bahamas for allegedly defrauding investors. The U.S. federal court agreed with his plea to give him bail in his first appearance. However, that does not end the FTX drama. The latest report establishes that SBF and ex-FTX CTO Gary Wang took out four loans from Alameda Research totaling $546.4 million to acquire shares in Robinhood Markets Inc. 

According to the affidavit, the duo took “$316,667,182.50 and $35,185,242.50 on April 30, 2022, and $175,076,380.89 and $19,452,931.21 on May 15, 2022.” SBF explained that the loans were not all taken at the same time, but were paid out in batches before and after the date listed on the filing. This means the total value of shares acquired may not necessarily tally in the calculation.

I borrowed the sum of $491,743,563.39, and Gary borrowed the sum of $54,638,173.71 from Alameda [Research]. All of the sums evidenced by the promissory notes were capitalized into Emergent as working capital so that it could purchase the shares in Robinhood.

Recently, crypto lender BlockFi claimed that SBF has pledged his shares in Robinhood to them. It can be recalled that SBF’s 7.6 percent stake in Robinhood was acquired in May 2022. BlockFi alleges this was promised to them as collateral to help them sail through liquidity issues. FTX and Alameda Research, however, went bankrupt without repaying the loan. BlockFi has, therefore, reportedly sued SBF for defaulting on its obligation under the pledge agreements and failing to honor his obligation. 

FTX petition court over BlockFi claims

In response, FTX has asked the U.S. bankruptcy judge to stop BlockFi from laying clams to the stocks as the law protects them from debt collection efforts. FTX further stated that it believes the shares are owned by Alameda Research. The bankrupt FTX companies must hold onto the stocks while the disputed claims to the equity shares’ ownership are being investigated. 

According to FTX, BlockFi is merely trying “an end-run” around the legal protection for bankrupt companies. They believe that the bankrupted lending company is deliberately limiting its lawsuit to a non-bankrupt company rather than Alameda Research. FTX explained that Alameda Research technically owns the shares and also owes the debt to BlockFi even though Emergent Fidelity holds the Robinhood shares.

SBF’s Robinhood shares have also been targeted by an individual FTX creditor who has asked a court in Antigua to make them available to repay creditors.

The U.S. Magistrate Judge Gabriel Gorenstein, upon granting SBF a pretrial release said that it is impossible for him to hide without being recognized. In addition, he cannot engage in another financial scheme as he had “achieved sufficient notoriety that it would be impossible.”

Nicolas Roos, a prosecutor said to the court that the bill package would require him to turn in his passport and also be confined in his parents’ home in Palo Alto, California.