The Financial Times reported that BlockFi, a cryptocurrency lender that filed for bankruptcy on Monday, sued FTX founder Sam Bankman-Emergent Fried’s Fidelity Technologies on the same day for Robinhood (HOOD) shares held by the company and pledged to BlockFi as collateral. According to the complaint, BlockFi and Emergent Fidelity Technologies agreed on November 9 to guarantee payment by an unnamed borrower, pledging an unnamed common stock as collateral. According to legal correspondence seen by FT, the borrower was Bankman-Alameda Fried’s Research. Bankman-Fried, who was attempting to raise funds prior to FTX’s demise, was still attempting to sell his Robinhood shares after entering into the collateral agreement with BlockFi, two people familiar with the situation told FT.
