Bankman-Fried disclosed Alameda loan of $546 million to buy Robinhood shares

FTX co-founders Sam Bankman-Fried (SBF) and Gary Wang borrowed $546.4 million from Alameda Research to buy a 7.6% stake in Robinhood. This is говорится in court documents.

In his testimony, SBF said that, together with Wang, he formed Emergent Fidelity Technologies to acquire the online broker’s securities.

“I borrowed the amount of $491,743,563.39, and Gary — $54,638,173.71 from Alameda [Research]. All funds were capitalized in Emergent as working capital, so that the company could buy Robinhood shares”, — the former FTX CEO explained.

According to him, on April 30 they borrowed $316,667,182.50 and $35,185,242.50, and on May 25 — $175,076,380.89 and $19,452,931.21. The funds were disbursed in tranches over several days around the dates stated in the filing.

On May 13, Antigua-registered Emergent Fidelity Technologies acquired 56.28 million Robinhood shares for $648.29 million.

In July, the US unit FTX struck a deal with BlockFi. The agreement provided for a revolving loan facility of $400 million to the crypto-lending platform and an option to buy it back for $240 million.

On November 28, BlockFi initiated bankruptcy proceedings in the United States. On the same day it filed a complaint against Emergent Fidelity Technologies, seeking to transfer collateral held by broker ED&F Man Capital Markets.

Subsequently the platform filed a lawsuit against the firm. According to the documents, on November 9 Emergent Fidelity Technologies entered into an agreement with BlockFi guaranteeing the payment of an unnamed borrower. As collateral, ordinary shares were used.

According to media reports, the dispute concerned Robinhood securities. Journalists also obtained lending documents indicating that the subject of the dispute was Robinhood securities.

In December, FTX filed for court protection of the online broker’s stock package from creditors.

Earlier, Wang and former Alameda Research head Caroline Ellison pleaded guilty to charges related to the FTX collapse.

Follow ForkLog’s bitcoin news on our Telegram — cryptocurrency news, prices and analysis.