FTX and Emergent Technologies Finalize $600M Robinhood Share Settlement in Delaware Bankruptcy Court

$600M Robinhood Shares Settlement Reached Between FTX and Emergent Technologies

Over $600 million worth of Robinhood shares have been agreed upon between bankrupt cryptocurrency exchange FTX and Emergent Technologies, founded by Sam Bankman Fried. According to a Sept. 6 motion filed by FTX CEO John Ray III in a Delaware Bankruptcy Court, Emergent would get $14 million from FTX to cover administrative costs associated with it withdrawing a petition to collect 55 million Robinhood shares and cash. Additionally, the accord gives Emergent a way to finish its Antigua bankruptcy case soon.

Robinhood Shares at the Heart of FTX’s $606M Deal to Maximize Creditor Value

According to FTX, the deal is an essential component of its restructuring plan to optimize value for creditors and help collect more money for its creditors while averting additional litigation costs. Ray said the agreement was the product of good faith, arm’s length negotiations between the parties and that such negotiations were free of any collusion in a statement he released on September 6.

The Justice Department seized shares in January 2023 after FTX collapsed in November 2022. Since then, several parties have claimed ownership or rights to the shares, including FTX, BlockFi, Bankman-Fried, and Emergent. On September 1, 2023, they were liquidated to Robinhood, who paid around $606 million to buy back the shares.

For more up-to-date crypto news, you can follow Crypto Data Space.