Sam Bankman-Fried’s Emergent Fidelity Files For Chapter 11 Bankruptcy

• BlockFi sued the business over the whereabouts of over 55 million Robinhood shares.
• Emergent Fidelity Technologies filed for Chapter 11 in the same court as FTX.

The Antigua and Barbuda-based holding firm Emergent Fidelity Technologies, owned by Sam Bankman Fried, has filed for Chapter 11 bankruptcy. Documents filed on 3 February reveal that Emergent Fidelity Technologies voluntarily filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the District of Delaware. 

Former CEO and FTX founder Sam Bankman-Fried was detained in the Bahamas last year. U.S. prosecutors had filed criminal charges and shared them with the Bahamian authorities, leading to the arrest.

Fight Over Robinhood Shares

BlockFi, FTX creditor Yonathan Ben Shimon, and Bankman-Fried have all had disagreements about the ownership of the Robinhood shares, which were valued more than $590 million. The United States Department of Justice (DOJ) said on January 6 that it had confiscated the shares and around $20 million in U.S. currency in connection with the action against FTX and its officials.

In November, cryptocurrency lending service BlockFi sued the business over the whereabouts of over 55 million shares of Robinhood.

After the DOJ seized the shares and $20 million from brokerage company Marex Capital Markets, Emergent Fidelity Technologies claimed ownership of both assets. Emergent Fidelity Technologies filed for Chapter 11 in the same court as FTX to seek a “form of joint administration,” as stated in a statement by one of the Joint Provisional Liquidators, Angela Barkhouse.

According to Barkhouse, Gary Wang, the co-founder of FTX, and Bankman-Fried both hold 10% of the company. While Wang has already entered a guilty plea to fraud charges, the criminal trial against Bankman-Fried will begin in October.

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