Sam Bankman-Fried (SBF) faces a new battleground in the ongoing fallout from FTX as shareholders pursue redemption, according to a review of court documents by The Telegraph.
According to a September 2 Telegraph story, the founder of the now-collapsed cryptocurrency exchange stands accused of failing to cooperate with liquidators appointed by an Antiguan court to oversee bankrupt holding company Emergent Fidelity Technologies (EFT).
SBF Accused of Blocking Liquidation of Bankrupt Holding Company
EFT was co-founded by FTX founder Sam Bankman-Fried and former executive Gary Wang. It filed for bankruptcy on February 23, 2023.
In an affidavit seen by The Telegraph, a British newspaper, the liquidators said: “Mr Bankman Fried has not cooperated with the liquidators or provided the EFT’s corporate documents.”
Until recently, EFT owned 56 million shares in the stock trading app Robinhood worth $606 million. This considerable stake sat frozen by the US Department of Justice amid sweeping fraud charges levied against Bankman-Fried late last year. Still, FTX creditors eyed the cache of shares in hopes of recouping losses from the exchange’s sudden implosion.
Robinhood reclaimed the shares on Friday, with proceeds held in a government account per a federal judge’s order. Yet the saga drags on as creditors insist Bankman-Fried stonewalls the EFT liquidation process.
How Is Bankman-Fried Paying His Legal Bills?
In the affidavit, the c
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Author: Josh Adams
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