Bankman-Fried Entity That Owns Robinhood Stake Goes Bankrupt (1)

Sam Bankman-Fried’s Emergent Fidelity Technologies Ltd., an offshore entity that owns 55 million shares of Robinhood Markets Inc., filed for bankruptcy Friday amid a fight over who should get the stock following the collapse of FTX Group.

The Robinhood stake, worth more than $590 million at current market prices, has been seized by the US government, but its ultimate fate is unclear. A hodgepodge of parties including the Justice Department, bankrupt crypto lender BlockFi Inc., and Bankman-Fried himself, are trying to take the shares for good.

The Chapter 11 filing gives Emergent Fidelity and its liquidators ...