BlockFi, the latest crypto lending platform to go bankrupt, has filed a suit against FTX FTT/USD founder Sam Bankman-Fried's holding company Emergent Fidelity Technologies, seeking his shares in Robinhood HOOD, which were allegedly pledged as collateral earlier in November.
What Happened: This comes as BlockFi filed for chapter 11 on Monday in a U.S. Bankruptcy Court.
BlockFi is requesting Emergent to forfeit collateral as part of a pledge agreement signed on Nov. 9, which demands that Emergent pay BlockFi a certain amount of money, as reported by Cointelegraph.
See More: Best Crypto Apps
SBF’s Emergent investment firm purchased $648 million worth of Robinhood shares in May, gaining a 7.6% stake in the online brokerage firm.
The U.S. Securities and Exchange Commission (SEC) is one of the biggest creditors of BlockFi. The regulator has a $30 million unsecured claim against the cryptocurrency lender.
BlockFi in its bankruptcy filing said that it has between $1 billion and $10 billion in assets, with liabilities in the same range, as well as over 100,000 creditors.
Read Next: Dogecoin Consolidates Recent 50% Surge: Is The Crypto Preparing For Another Leap Higher?
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Get ready to uncover the secrets of decentralized finance and security in the crypto market with Crypto Unlocked , Benzinga's new virtual crypto event series. Don't miss out on this opportunity to learn from the experts and connect with fellow crypto enthusiasts — subscribe and turn on notifications for Crypto Unlocked on YouTube today !