- Simon Dixon tweeted that it is not surprising if SBF gets the $450 million shares from Robinhood.
- He referred to SBF’s request to hold his shares of Robinhood for meeting the latter’s expenses for the case.
- BlockFi has also asked for the share putting forward the ownership claim.
Simon Dixon, the CEO, and co-founder of the online investment platform BankToTheFuture.com tweeted today that it is not surprising if Sam Bankman-Fried, the former CEO of the fallen crypto firm FTX, “finds a way to get the shares to protect himself”, from his Robinhood shares.
Previously, on January 5, SBF put forward a court filing, requesting to hold his 56 million shares of the customer trading application Robinhood, worth around $450 million.
Notably, SBF’s lawyers argued that the SBF is in need of the amount to pay for the criminal defense, citing the US case law, which states that the financial inability of a defendant may push him to “irreparable damage”.
Additionally, the lawyers claimed that as far as SBF hasn’t been proven guilty, it’s not just to deny him the fund:
Mr. Bankman-Fried has not been found criminally or civilly liable for fraud, and it is improper for the FTX Debtors to ask the Court to simply assume that everything Mr. Bankman-Fried ever touched is presumptively fraudulent.
Significantly, in May 2022, SBF acquired a 7.6% stake in Robinhood, through his Emergent investment company, buying a total of $648 million in Robinhood shares.
In November 2022, BlockFi filed a lawsuit claiming to retrieve its share from Robinhood, targeting SBF’s Emergent Fidelity Technologies. Reportedly, the stock worth $450 million, on which SBF lays ownership claims, had been put up by SBF as collateral for a BlockFi loan to FTX affiliate Alameda Research.
Interestingly, Dixon said in his tweet that though the fund on the issue is seemingly suited for either FTX or BlockFi, there are chances for SBF getting the share back. He added that his opinion has come from his own personal “experience of Chapter 11 protection”.