Breaking News: Robinhood Stake Seized by US Government, Bankruptcy Looms for Emergent Fidelity Technologies
The US government has taken control of the 55 million shares of Robinhood Markets Inc., owned by Emergent Fidelity Technologies Ltd., a subsidiary of Sam Bankman-Fried’s Fidelity Technologies. The Robinhood stake, valued at over $590 million, has become a subject of a complex legal battle between several parties including the Justice Department, bankrupt crypto lender BlockFi Inc., and Bankman-Fried himself.
Emergent Fidelity Technologies has now filed for Chapter 11 bankruptcy, giving the entity and its liquidators appointed by a court in Antigua some time to settle the disputes and protect the interests of the creditors. The liquidators are tasked with ensuring the interests of all creditors are protected and defended the assets of the company.
According to court papers, Emergent Fidelity holds $20.7 million in cash but has no other assets. Bankman-Fried holds a 90% stake in the company, but no longer has control over it. The remaining 10% is owned by FTX co-founder Gary Wang.
Stay tuned for more updates on this developing story, as the fate of the Robinhood stake and Emergent Fidelity Technologies remains uncertain in the wake of the FTX collapse. The case is being heard in the U.S. Bankruptcy Court for the District of Delaware.
