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    Emergent Fidelity Technologies Files for Chapter 11 Bankruptcy, Sparking Heated Debate Over Robinhood Shares


    Emergent Fidelity Technologies, the Sam Bankman-Fried holding company based in Antigua and Barbuda, has filed for voluntary chapter 11 bankruptcy, reported Bloomberg.[0] This move has sparked heated debate as the company holds 56 million shares of Robinhood Markets (HOOD), a highly sought-after asset worth more than $590 million at the time of publication.[1]

    The company was already the target of a lawsuit filed by crypto lending firm BlockFi in November regarding the status of the Robinhood shares.[2] In response, the Department of Justice announced on Jan. 6 that it had seized the shares as well as roughly $20 million in U.S. dollars as part of the case against FTX and its executives.[3]

    Court papers state that Bankman-Fried has a 90% stake in the entity, but no longer has control over it.[4] Gary Wang, co-founder of FTX, holds a 10% stake[5] Bankman-Fried is currently facing criminal charges, while Wang has already pled guilty to fraud charges.[6]

    The Robinhood shares were pledged as collateral to bankrupt crypto lender BlockFi, which placed its own claim on them last year.[1] The company has only $20.7 million in cash, but the fate of the Robinhood shares is still unclear.[5]

    The Chapter 11 filing gives Emergent Fidelity and its liquidators some breathing room.[7] The liquidators' “duties are to the debtor’s creditors, whoever those creditors may be,” said Angela Barkhouse, one of the liquidators, in a sworn court statement.[5]

    The case of Emergent Fidelity Technologies Ltd., with case number 23-10149, is before the U.S. Bankruptcy Court for the District of Delaware.[8] The proceedings will start in the coming weeks and everyone is waiting to find out what the future holds for the creditors.[1]

    0. “Firm That Held SBF’s 56M HOOD Shares Files For Bankruptcy” The Tokenist, 3 Feb. 2023,

    1. “The Future of $600 Million Robinhood Shares in Jeopardy as Emergent Fidelity Files for Bankruptcy” Coinpedia Fintech News, 4 Feb. 2023,

    2. “Sam Bankman-Fried's holding company files for bankruptcy By Cointelegraph”, 3 Feb. 2023,

    3. “Sam Bankman-Fried's holding company files for bankruptcy” Cointelegraph, 3 Feb. 2023,

    4. “Sam Bankman-Fried's Emergent Fidelity Technologies Files for Bankruptcy” Yahoo! Voices, 3 Feb. 2023,

    5. “FTX founder Sam Bankman-Fried’s Emergent Fidelity files for bankruptcy, Robinhood shares fall into limbo” FXStreet, 4 Feb. 2023,

    6. “SBF’s holding company Emergent Fidelity files for bankruptcy” AMBCrypto News, 4 Feb. 2023,

    7. “Bankman-Fried entity that owns Robinhood stake goes bankrupt” Gulf News, 4 Feb. 2023,

    8. “Entity At Center Of FTX-BlockFi Dispute Files For Ch. 11” Law360, 4 Feb. 2023,

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