Emergent Fidelity Technologies, the company of FTX cryptocurrency exchange founder Sam Bankman-Fried, has been sued by cryptocurrency lending platform BlockFi for the way it used its shares in the investment app Robinhood.
According to documents obtained by the Financial Times, BlockFi is claiming Emergent Fidelity Technologies’ shares in Robinhood, alleging that they were designated as collateral in the event of a default.
BlockFi and Emergent Fidelity Technologies reportedly reached an agreement on 9 November to guarantee payment by pledging equity stake, according to the same source.
It is noted that Emergent Fidelity Technologies holds a 7.42% stake in Robinhood.
As a reminder, BlockFi filed for creditor protection on Monday along with eight of its subsidiaries, having “frozen” withdrawals from its platform and acknowledging its “significant exposure” to FTX.
Filing under Article 11 of US bankruptcy law was also filed days ago by FTX, which had signed an agreement with BlockFi in July for a $400 million credit line and call option for $240 million.