FTX and SBF-Owned Company Settle Deal Over Robinhood Shares
CryptoNewsTerminal Staff09 Sep, 2024
FTX and SBF-Owned Company Settle Deal Over Robinhood Shares
As per Cointelegraph, FTX and Emergent Fidelity Technologies, a firm owned by FTX founder Sam Bankman-Fried (SBF), have reached a deal over the ownership of $600 million worth of Robinhood shares. According to a court filing on Tuesday by FTX CEO John Ray, Emergent has agreed to drop its claim for about 55 million Robinhood shares and cash from FTX. In return, FTX will pay Emergent $14 million. This deal brings an end to the legal battle between the two companies, which began when Emergent filed a lawsuit against FTX in November 2022, claiming that FTX had wrongfully taken control of the Robinhood shares. The shares were originally purchased by Emergent in May 2022 using a $500 million loan from FTX. The settlement is a significant victory for FTX as it removes a major legal hurdle. The company is still facing other challenges, including a criminal investigation by the US Department of Justice and a civil lawsuit by the US Securities and Exchange Commission.
