Lunar statement from Sam Bankman-Fried fighting for his Robinhood shares – He says he needs them more than FTX customers who are only experiencing a “possibility of economic loss”

Disgraced FTX founder Sam Bankman-Fried (SBF) is trying to regain access to his Robinhood shares, worth more than $460 million. The former CEO of the collapsed crypto-currency exchange says he needs them to “Pay for his criminal defense“, stressing that without them, the consequences would be serious and “irreparable.” FTX customers, on the other hand, “face only the possibility of economic loss“, the SBF court filing states.

Robinhood Stock Litigation

FTX co-founder and former CEO Sam Bankman-Fried (SBF) is attempting to regain control of his Robinhood shares, which are currently being contested by several parties, including SBF himself, FTX’s new management and bankrupt crypto-currency lender Blockfi.

Bankman-Fried has asked the bankruptcy court to deny the motion to enforce the automatic stay (stay motion) filed by FTX’s new management over 56,273,269 Robinhood shares worth more than $460 million, according to a Thursday court filing.

The court document details that the former FTX chief “requests that the motion to stay be denied“because the new management of FTX”has failed to carry its heavy burden of establishing that such extraordinary relief is warranted“. In addition, the motion to stay should be “moot“since the U.S. Department of Justice (DOJ) has obtained a warrant to seize the Robinhood shares,” the court document adds, noting that FTX’s new management has not withdrawn the motion to stay, prompting Bankman-Fried to file an objection.

The court filing further explains that SBF “needs a portion of these funds to pay for his criminal defense“, stating that a “financial inability to defend oneself has serious consequences, and is irreparable.“The filing continues:

Conversely, FTX debtors face only the possibility of economic loss.

Sam Bankman-Fried argued that the Robinhood shares in dispute are not owned by Alameda Research or any other entity involved in the FTX bankruptcy. Rather, they are owned by Emergent Fidelity Technology Ltd, a company he owns 90% of. According to court filings, Bankman-Fried and Gary Wang, another FTX executive, borrowed the funds from Alameda so that Emergent could purchase the Robinhood shares.

Crypto community outraged by SBF’s statements

Many people on social media are outraged by Bankman-Fried’s claim that he faces greater harm than FTX customers who only experience “the possibility of an economic loss.“

SBF gives new meaning to chutzpah

arguing in court that the balance of equities weighs in favor of him selling HOOD to pay his own legal fees b/c prison is a priceless harm and FTX creditors will only suffer economic loss

ever the utilitarian eh Sammy ? https://t.co/rnnXEH2oM4

– _gabrielShapir0 (@lex_node) January 6, 2023

A person tweeted: “SBF gives new meaning to the word chutzpah. Argue to the court that the balance of equities weighs in favor of selling HOOD to pay its own legal fees because the jail is a priceless injury and FTX’s creditors will only suffer an economic loss.“Another person replied :

This is one of the most disgusting lines I have ever read. To associate your name with a statement that the economic loss of debtors is not a matter of life and death for some people is heartless and irrelevant. Whatever happened to the slogan “Nothing is more important than paying back customers”?