FTX Settles $600M Robinhood Shares Dispute with Emergent Technologies
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
Bankrupt cryptocurrency exchange FTX has reached a settlement with Emergent Technologies, a company co-founded by Sam Bankman-Fried, over a dispute involving more than $600 million worth of Robinhood shares.
According to a recent court filing, FTX will pay Emergent $14 million to cover administrative expenses related to the withdrawal of its petition for 55 million Robinhood shares and cash.
The agreement, filed by FTX CEO John Ray III in a Delaware Bankruptcy Court, could help recover more funds for FTX’s creditors while avoiding the costs of prolonged litigation.
The deal is also expected to help Emergent swiftly conclude its own bankruptcy proceedings in Antigua.
In a declaration supporting the settlement, Ray stated that the agreement was the result of “good faith arm’s length negotiations,” ensuring no collusion between the parties.
Emergent acquired approximately 56 million Robinhood shares, valued at around $600 million, in May 2022 through an arrangement with Bankman-Fried and Alameda Research, the trading firm he founded.
Ownership of the Robinhood shares has been contested by multiple parties, including FTX, BlockFi, Bankman-Fried, and Emergent.
#FTX has reached a deal regarding $600 million in #Robinhood shares, a crucial part of its ongoing bankruptcy proceedings.
These shares have been at the center of multiple legal disputes, including claims from FTX founder Sam Bankman-Fried, creditors, and other parties.
The shares were seized by the U.S. Department of Justice in January 2023, following the collapse of FTX in
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