Emerging fidelity Sam Bankman-Fried files for bankruptcy amid Robinhood stock battle

Emergent Fidelity Technologies, the offshore entity that owns 55 million shares of Robinhood Markets Inc HOOD, filed for bankruptcy Friday, as multiple parties attempt to claim ownership of the shares, a reported Bloomberg.

Robinhood shares are valued at over $590 million at current market prices and have been seized by the US government.

The Chapter 11 bankruptcy filing gives Emergent Fidelity and its Antigua court-appointed liquidators the power to defend their assets and the interests of creditors in the United States. United

"Given the many parties claiming to be creditors or absolute owners of the debtor's assets in proceedings in the United States, liquidators believe Chapter 11 protection is the only convenient way to empower the debtor to defend himself, the assets, and the interests of his creditors in the United States,” said Angela Barkhouse, one of the Antigua court-appointed liquidators.

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Emergent Fidelity, which is 90% owned by Sam Bankman-Fried, holds $20.7 million in cash, but has no other assets.

The company's 10% shareholder is Gary Wang, co-founder of FTX Group.

Despite Bankman-Fried's majority ownership, it no longer controls the entity, as stated in court documents.

Emergent Fidelity Technologies' bankruptcy filing is the result of the ongoing legal battle over who should own the shares following the collapse of the FTX Group.

Chapter 11 protection gives the business time to navigate complex legal proceedings and ensures that the interests of creditors and assets are protected.

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