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Simon Dixon Tweets on SBF’s Ownership Claim on Robinhood Shares

source-logo  coinedition.com 08 January 2023 10:45, UTC

Simon Dixon, the CEO, and co-founder of the online investment platform BankToTheFuture.com tweeted today that it is not surprising if Sam Bankman-Fried, the former CEO of the fallen crypto firm FTX, “finds a way to get the shares to protect himself”, from his Robinhood shares.

Either #FTX or #BlockFi creditors should get them but from my experience of Chapter 11 protection it would not surprise me if @SBF_FTX finds a way to get the shares to protect himself. Why you think he voluntarily made his way back to the US? Financial crime Chapter 11 protection https://t.co/ASR4HGp3zl

— Simon Dixon (@SimonDixonTwitt) January 8, 2023

Previously, on January 5, SBF put forward a court filing, requesting to hold his 56 million shares of the customer trading application Robinhood, worth around $450 million.

Notably, SBF’s lawyers argued that the SBF is in need of the amount to pay for the criminal defense, citing the US case law, which states that the financial inability of a defendant may push him to “irreparable damage”.

Additionally, the lawyers claimed that as far as SBF hasn’t been proven guilty, it’s not just to deny him the fund:

Mr. Bankman-Fried has not been found criminally or civilly liable for fraud, and it is improper for the FTX Debtors to ask the Court to simply assume that everything Mr. Bankman-Fried ever touched is presumptively fraudulent.

Significantly, in May 2022, SBF acquired a 7.6% stake in Robinhood, through his Emergent investment company, buying a total of $648 million in Robinhood shares.

In November 2022, BlockFi filed a lawsuit claiming to retrieve its share from Robinhood, targeting SBF’s Emergent Fidelity Technologies. Reportedly, the stock worth $450 million, on which SBF lays ownership claims, had been put up by SBF as collateral for a BlockFi loan to FTX affiliate Alameda Research.

Interestingly, Dixon said in his tweet that though the fund on the issue is seemingly suited for either FTX or BlockFi, there are chances for SBF getting the share back. He added that his opinion has come from his own personal “experience of Chapter 11 protection”.

coinedition.com