The judge overseeing crypto lender BlockFi’s bankruptcy case will begin considering next month what to do with shares in RobinHood Markets that an entity owned by Sam Bankman-Fried purportedly pledged as collateral to BlockFi in the days before the collapse of FTX, the crypto exchange he founded.
The bankruptcy judge overseeing BlockFi’s Chapter 11 case agreed during a court hearing on 28 December to review an initial dispute next month over BlockFi’s request to transfer more than 56 million shares of Robinhood stock to a neutral broker or escrow account until the rightful owner is determined. BlockFi’s longtime customer, FTX, has made its own claim to the Robinhood stock, owned by an Antiguan entity backed by Bankman-Fried.