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Bankman-Fried Entity That Owns Robinhood Stake Goes Bankrupt

  • US government already seized $590 million Robinhood stake
  • Shares subject to web of creditor claims after FTX collapse
Sam Bankman-Fried departs from court in New York on Jan. 3.

Sam Bankman-Fried departs from court in New York on Jan. 3.

Photographer: Stephanie Keith/Bloomberg
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Sam Bankman-Fried’s Emergent Fidelity Technologies Ltd., an offshore entity that owns 55 million shares of Robinhood Markets Inc., filed for bankruptcy Friday amid a fight over who should get the stock following the collapse of FTX Group.

The Robinhood stake, worth more than $590 million at current market prices, has been seized by the US government, but its ultimate fate is unclear. A hodgepodge of parties including the Justice Department, bankrupt crypto lender BlockFi Inc., and Bankman-Fried himself, are trying to take the shares for good.