FTX Fights BlockFi Bid to Toss Robinhood Shareholder’s Bankruptcy

Sam Bankman-Fried’s offshore entity holding 55 million shares of Robinhood Markets Inc. belongs in bankruptcy to sort out myriad competing ownership claims, FTX Trading Ltd. said, fighting efforts by crypto lender BlockFi Inc. to dismiss the case.

Emergent Fidelity Technologies Ltd. and its roughly $600 million worth of Robinhood equity, which has been seized by the federal government, needs Chapter 11 protection “to ensure the fair resolution” of claims asserted by an entangled group of companies and creditors, FTX said in a Thursday court filing.

Claims to Emergent’s assets have been made by the Justice Department for victims of Bankman-Fried’s ...