Report Reveals Sam Bankman-Fried Took $546 Million From Alameda Research To Buy Robinhood Stock

For Angel DiMatteo @shadowargel

The report highlights the lack of control over the management of funds between FTX Y Mall, as well as the fact that SBF used company capital to acquire the shares of Robin Hood through a phantom entity.

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  • Bankman-Fried and Wang took USD $546 million from Alameda Research
  • They acquired shares of Robin Hood through a shell company
  • Bankman-Fried, FTX Group and BlockFi those actions would be disputed
  • The shares in question are valued at around USD $440 million.

Recently published reports indicate that the exchange founded by Sam Bankman-Fried (SBF), FTX, seized some USD $546 million belonging to Alameda Research to acquire a significant shareholding in Robin Hood, the service that allows users to invest in cryptocurrencies and shares of important companies.

Owners of shares of Robin Hood

The information was made public in a court document provided by the court of the Bahamas, where an affidavit of the same is recorded SBF, where he would have admitted that he and the co-founder of FTX, Gary Wang, took about USD $546 million from Mall between April and May of this year, and used that money to acquire a 7.6% stake in Robinhood through a shell company.

Said phantom entity through which the purchase was made is known as Emergent Fidelity Technologies LTDand the purchase of the shares of Robin Hood It was done in May of this year.

An interesting fact regarding the interest on Robin Hood is that, exactly one month after the purchase of the shares through the shell company was finalized, rumors began to emerge that FTX I would be interested in purchasing this service.

Despite the fact that the information came to place at a time when the market compromised the operations of many companies, Bankman-Fried himself denied such rumors but did not rule out the possibility of an eventual alliance given the good prospects offered by the company.

interest in shares

Following the events that led to the collapse of FTX, the actions of Robin Hood they became of great interest to both SBF and other entities.

A published report through the middle CoinDesk reports that the investment made by SBF and Wang corresponds to some 56 million shares HOOD, which at the date of publication are quoted at more than USD $440 million.

The reports on the case indicate that the SBF itself would be trying to claim these actions, which is being disputed with FTX Group under his new management and with BlockFi. The latter allege that they have a right to the shareholding due to a deal they would have made with Bankman-Fried before the collapse of the exchange.

Keep in mind that Bankman-Fried is currently taking on her legal process while at her parents’ house under house arrest. Her partner and former CEO of Alameda Research, Caroline Ellison pleaded guilty before the US courts and acknowledged that part of the irregularities perpetrated were done in complicity with the SBF itself.


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Article by Angel Di Matteo / DailyBitcoin

Picture of Unsplash

CAVEAT: This is an informative article. DiarioBitcoin is a communication medium, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. They may not be suitable for retail investors, as the entire amount invested could be lost. Check the laws of your country before investing.