BlockFi sued Sam Bankman-Fried's company
Following a bankruptcy filing, the blockchain platform sued Emergent Fidelity Technologies, demanding the return of its collateral in the form of Robinhood stock
Cryptocurrency lending platform BlockFi has filed a lawsuit against investment firm Emergent Fidelity Technologies by former FTX CEO Sam Bankman-Fried. The cryptocurrency platform is demanding the return of collateral as part of an agreement that Emergent allegedly failed to comply with.
In the lawsuit against Emergent, BlockFi claims to have suffered direct losses from the investment company's failure to meet its obligations. The agreement was made Nov. 9, in which Emergent Fidelity Technologies pledged to guarantee payments from an unnamed borrower. The collateral used was "common stock."
The stock in question was Robinhood, according to the Cointelegraph. Reporters reported that in May, Bankman-Fried purchased 7.6 percent of the brokerage's stock for a total of $648 million through his investment firm Emergent.
The lawsuit against the investment company was filed Nov. 28 in bankruptcy court in the District of New Jersey on the same day BlockFi filed for Chapter 11 bankruptcy because of the collapse of the FTX cryptocurrency exchange.
When filing for bankruptcy, BlockFi indicated that both its assets and liabilities are between $1 billion and $10 billion, and the number of creditors exceeds 100,000. BlockFi owes $275 million to FTX's U.S. unit.
