Sam Bankman-Fried’s Emergent Fidelity Technologies has filed for bankruptcy.
Emergent, which operates as an online brokerage firm, announced that it has filed for chapter 11 bankruptcy protection. The company’s role in FTX creditors was thought to be large due to its Robinhood shares.
Sam Bankman-Fried’s Company Files for Bankruptcy
Emergent Fidelity Technologies, a company co-founded by FTX founder Sam Bankman-Fried and former executive Gary Wang, has filed for Chapter 11 bankruptcy protection.
Emergent Fidelity owned shares of Robinhood Markets, which quickly became a hot topic among many companies because of the value it could bring to FTX creditors. The company had 56 million shares of Robinhood.
These shares were given as collateral to the bankrupt crypto lender BlockFi last year. Sam Bankman-Fried then argued that the company should retain control of the shares. That said, federal officials moved in January to seize control of the assets.
These 56 million shares of Robinhood are worth more than $600 million at today’s closing price. Bloomberg reports that the only other asset Emergent Fidelity has is $20.7 million in cash.