Emergent Fidelity Technologies, owned by Sam Bankman-Fried, files for bankruptcy. Emergent owns 56 million shares of the online broker Robinhood.
Emergent Fidelity was the company that owned 56 million shares of Robinhood Markets (HOOD), an asset that quickly attracted interest from several companies for the value it could bring to FTX’s creditors. The shares were also pledged as collateral to bankrupt crypto-currency lender BlockFi, which filed its own application last year.
Sam Bankman-Fried argued that he’should retain control of the shares. Nevertheless, federal authorities moved to seize control of the assets in January.
Those 56 million Robinhood shares are worth more than $600 million at today’s closing price. According to Bloomberg, the only other asset held by Emergent Fidelity was $20.7 million in cash.
Bankman-Fried owns 90% of Emergent Fidelity, and FTX co-founder Wang owns the remaining 10%.
Emergent Fidelity’s bankruptcy filing was not immediately available. It is not clear what debts Emergent is claiming at this time.