Sam Bankman-Fried, former CEO of FTX, took out a loan from Alameda Research to buy Robinhood stock.
Alameda took a loan by giving these purchased shares as collateral.
Sam Bankman-Fried Gets Loan From Alameda
According to court documents, FTX founder SBF borrowed hundreds of millions of dollars from Alameda Research to buy a stake in Robinhood.
SBF testified in affidavit in a Caribbean court prior to his arrest that he and FTX co-founder Gary Wang received over $546 million in promissory notes from Alameda in April and May. They used that money to capitalize front company Emergent Fidelity Technologies Ltd, which bought a 7.6% stake in Robinhood in May.
Crypto lending firm BlockFi has claimed $440 million of shares in FTX Group and Sam Bankman-Fried.
BlockFi, which filed for bankruptcy, claimed in a court document that it owns the rights to Robinhood shares due to SBF’s settlement in early November.
These shares were pledged as collateral against a loan taken out by Alameda Research, according to the filing on Tuesday.
