Bankrupt cryptocurrency exchange FTX has struck a deal with Emergent Technologies, an offshore investment firm co-founded by ex-FTX CEO Sam Bankman-Fried, regarding over $600 million worth of Robinhood shares.
FTX is set to pay Emergent $14 million in administrative costs as part of the agreement. This payment will cover expenses tied to Emergent’s withdrawal of its claim over 55 million Robinhood shares, a decision that stems from a September 6 motion filed by the current FTX CEO John Ray III, in Delaware Bankruptcy Court.
This agreement is widely seen as a critical step toward securing funds for its creditors while minimizing additional legal costs. By avoiding extended litigation, FTX can focus on its reorganization plan, aiming to maximize the value recovered for those affected by its collapse.
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Emergent Technologies initially acquired approximately 56 million Robinhood shares, valued at around $600 million, in May 2022. The shares were purchased through an agreement with SBF and Alameda Research.
Following FTX’s collapse in November 2022, multiple entities, including FTX, BlockFi, and SBF himself, made claims to the seized shares. In January 2023, the U.S. Department of Justice intervened and took control of the shares. The situation took a new turn on Sept. 1, 2023, when Robinhood repurchased the shares, now worth over $606 million.
Emergent Technologies filed for Chapter 11 bankruptcy in February 2023. In March 2023, SBF was sentenced to 25 years in prison for orchestrating a fraud that led to the collapse of multiple prominent cryptocurrency projects, including his own crypto exchange, FTX.
In other news, the CEO of Revelo Intel has resigned after a violent crypto heist.
