SBF Borrowed $540M From Alameda To Purchase Robinhood Shares
SBF Borrowed $540M From Alameda To Purchase Robinhood Shares.
Misusing Funds
According to a new court document released on Tuesday by the Eastern Caribbean Supreme Court, disgraced former CEO of FTX Sam Bankman-Fried along with FTX co-founder Zixiao “Gary” Wang were said to have borrowed hundreds of millions of money from the crypto exchange’s sister firm Alameda Research this past year.
SBF was said to have been originally given a loan of $316.6 million and Wang $35.1 million. Later on in May, SBF was then given two more loans of $175 million and $19.4 million.
All these loans totalled up to around $546 million in borrowed funds from Alameda Research between between April and May 2022.
Related: Sam Bankman-Fried (SBF) Receives Multiple Prison Advice!
SBF took funds from the trading firm, Alameda Research, to buy Robinhood, $HOOD, stock worth about $450 million this year.
Later, Alameda took out a loan and pledged those same shares as collateral, CoinDesk has reported.
— unusual_whales (@unusual_whales) December 27, 2022
“I borrowed the sum of $491,743,563.39, and Gary borrowed the sum of $54,638,173.71 from Alameda [Research]. All of the sums evidenced by the promissory notes were capitalized into Emergent as working capital so that it could purchase the shares in Robinhood.” SBF wrote in the filing.
BlockFi vs FTX
This new revelation of the $546M loan to the former FTX executives could complicate the ongoing legal battle on the ownership of these Robinhood shares after now-bankrupt crypto lender BlockFi alleged that Bankman-Fried had promised the 56 million Robinhood shares as collateral.
According to the Financial Times, in BlockFi’s lawsuit, the crypto lender accuses Sam Bankman-Fried’s Emergent of failing to follow its obligation of providing them with the Robinhood shares which was promised to help BlockFi through their liquidity issues.
Related: Japan To Lift Their Foreign Stablecoin Ban In 2023
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