FTX and Emergent Reach Settlement in $600M Robinhood Stock Saga
The post FTX and Emergent Reach Settlement in $600M Robinhood Stock Saga appeared on BitcoinEthereumNews.com.
The settlement between FTX and Emergent over $600 million in Robinhood shares will now avoid a prolonged legal battle and should speed up asset recovery for FTX’s creditors. Emergent Technology, founded by FTX’s former CEO Sam Bankman-Fried will receive $14 million from the exchange to cover administrative expenses of withdrawing 55 million Robinhood shares. The settlement was filed in a Delaware Bankruptcy Court by FTX CEO John Ray III and could assist in recovering more money for FTX’s creditors while saving the costs for prolonged litigation. In addition to that the deal is expected to facilitate a quicker resolution to Emergent’s own bankruptcy case in Antigua. Ray defended the settlement by confirming that there was no dispute between the parties and that the agreement was the consequence of “good faith arm’s length negotiations.” The conflict around the Robinhood shares is a component of the wider aftermath of FTX’s collapse which has resulted in numerous lawsuits. A U.S. judge ordered the bankrupt exchange to pay $12.7 billion in reparations to its customers in a separate development in August 2024. It came after the exchange was charged with embezzling deposits for speculative ventures. Emergent Acquired Robinhood Shares in 2022 Emergent acquired 56 million Robinhood shares valued at approximately $600 million after Bankman-Fried and Alameda Research reached an agreement in May 2022. The shares were seized by the United States Department of Justice in January 2023, following FTX’s collapse in November 2022. On September 1, 2023, the shares were bought back by Robinhood for around $606 million. During that time, the DOJ stated that the seized assets constituted property involved in violations of money laundering and could have been the proceeds of wire fraud. Emergent filed for Chapter 11 bankruptcy in February 2023, and is anticipated to resolve the case following the agreement…
Filed under: News - @ September 11, 2024 1:26 pm