FTX and Sam Bankman-Fried have been stealing the spotlight for all the wrong reasons in recent weeks. New revelations about the exchange and SBF surface every day. Many can’t even figure out that SBF has manipulated clients’ funds to such an extent.
Speaking of manipulation, some interesting details have come to light from the court documents. According to the documents, SBF borrowed $546 million from Alameda Research to buy Robinhood (HOOD) stock.
SBF acquired Robinhood stock with borrowed money
SBF’s Robinhood stocks have been an interesting focus for many. Recently, BlockFi sued SBF to get their hands on the million dollar Robinhood stake. However, to stop BlockFi’s efforts, FTX asked a bankruptcy judge to prevent BlockFi from acquiring Robinhood’s stock.
At the time of publication, three parties are vying for control of those shares. One is BlockFi, the lender that avoided bankruptcy earlier this year while FTX was in good financial shape. Two: Yonathan Ben Shimon, an Antigua-based trustee appointed by an FTX creditor. Sam Bankman-Fried is the third person.
According to the details of the affidavit provided to a Caribbean court, SBF and Gary Wang borrowed $546 million through promissory notes from Alameda Research in April and May. The borrowed funds were used to buy the 7.6% stake in Robinhood that Fried acquired in May.