SBF-Owned Emergent Fidelity Technologies Filed for Bankruptcy
Posted on 02/05/2023
Emergent Fidelity Technologies is a company founded by FTX Group founders Sam Bankman-Fried (SBF) and Gary Wang. Bankman-Fried is the owner of 90% of Emergent Fidelity, and with FTX co-founder Gary Wang owning the remaining 10%. Sam Bankman-Fried is being charged with a number of crimes in the U.S. including wire fraud and money laundering.
Emergent Fidelity Technologies filed for Chapter 11 bankruptcy protection late on February 3, 2023. Emergent Fidelity Technologies holds 56 million shares of Robinhood Markets (ticker: HOOD) stock. The HOOD shares were also pledged as collateral to bankrupt cryptocurrency lender BlockFi (BlockFi Lending LLC).
The 56 million shares of Robinhood are worth more than US$ 600 million derived by calculating early February 2023 closing prices.
The only other sizable asset owned by Emergent Fidelity Technologies was US$ 20.7 million in cash.
In January 2023, the U.S. Department of Justice (DOJ) seized more than 55 million shares of Robinhood stock owned by Emergent Fidelity Technologies. The stock had been held at an account at U.K.-based brokerage ED&F Man. FTX filed for bankruptcy protection on November 11, 2023 and Sam Bankman-Fried resigned as CEO the same day.
U.S. Campaign Donations
On another note, FTX issued confidential letters to to politicians and other political beneficiaries of Sam Bankman-Fried, his deputies, and his companies. The letters are asking for returning the money by the end of February. Sam Bankman-Fried was a heavy donor to the Democrat party, but at times he did donate the rival party.