As part of an offer agreement pertaining to the shares of Robinhood that Sam Bankman-Fried gave as collateral earlier this month, BlockFi is demanding turnover from Emergent.
BlockFi is one of the most recent companies to file for bankruptcy as a result of the collapse of the FTX cryptocurrency exchange.
Sam Bankman-Fried will now face legal action after BlockFi, a cryptocurrency lending company that applied for bankruptcy protection on Monday, took this step. Regarding the shares of Robinhood that Sam Bankman-Fried offered as collateral earlier this month, BlockFi has launched a lawsuit against his holding company, Emergent Fidelity Technologies.
The lawsuit against Bankman was filed on the same day as the Chapter 11 bankruptcy petition in the United States Bankruptcy Court for the District of New Jersey was filed.
According to the petition, BlockFi is requesting turnover collateral from Emergent as part of an offer agreement from November 9 in which Emergent agreed to a fee schedule with BlockFi that it is believed has not been met.
BlockFi describes the collateral as "containing some shares of common stock." Bankman-Fried purchased a 7.6% interest in online trading startup Robinhood in May, paying $648 million on Robinhood shares via his Emergent investment business.
Among the most recent businesses to declare bankruptcy due to the fall of the FTX cryptocurrency exchange is BlockFi.
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Earlier in the month, the cryptocurrency company first disputed that the preponderance of its holdings was kept on FTX, but somehow it later confirmed having "substantial exposure" to the exchange. BlockFi claimed that the company had holdings between $1 billion and $10 billion, debts within the same amount, and more than 100,000 debtors in its bankruptcy case.
