Sam Bankman-Fried received money from Alameda to purchase Robinhood stock.

As the case against FTX founder Sam Bankman-Fried continues, new developments have emerged. According to recent court documents, FTX chief Sam Bankman-Fried and the company’s co-founder borrowed hundreds of millions of dollars from his sister company Alameda Research in order to buy shares of a popular trading app, Robinhood Markets (HOOD).

According to the affidavit filed in Caribbean court before the arrest earlier this month, SBF said he and co-founder Gary Wang borrowed a total of $546 million from Alameda. Later, they used that money to capitalize Emergent Fidelity Technologies Ltd. This is a shell company that bought a 7.6 percent stake in Robinhood in May 2022.

This affidavit opens new doors in the race to claim Robinhood’s 56 million shares. In addition to Sam Bankman-Fried, crypto-currency lender BlockFi and FTX Group are also trying to claim the shares, which could likely be worth $440 million today.

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After the FTX episode, crypto lender BlockFi faced significant liquidity issues and had to file for bankruptcy. In addition, the crypto-currency lender also filed a lawsuit against Sam Bankman-Fried for his claim to Robinhood shares.

New judge takes on SBF fraud case

Citing a court document, Reuters reports that the criminal case against FTX CEO Sam Bankman-Fried has been assigned to U.S. Judge Lewis Kaplan. Judge Kaplan was also in charge of overseeing the high-profile defamation lawsuits against former U.S. President Donald Trump.

The decision comes as former judge appointee Ronnie Abrams was forced to withdraw from the FTX case, as her husband is a partner at the law firm Davis Polk & Wardwell, which had advised FTX in 2021. In a filing last Friday, Ronnie Abrams said:

“My husband had no involvement in any of these representations. Nevertheless, to avoid any possible conflict, or the appearance of a conflict, the Court hereby recuses itself from this action.”

U.S. DoJ launches investigation into FTX hacking

The U.S. Department of Justice is now investigating the $400 million hack that occurred just hours after the company filed for Chapter 11 bankruptcy last month. Bloomberg was the first to report the news, citing an unidentified source.

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The collapse of crypto-currency exchange FTX was one of the biggest mishaps in crypto history. U.S. authorities have accused it of committing or conspiring to commit fraud, money laundering and conspiring to defraud U.S. investors.

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