SoFi Stakeholders Hit by $560 Million Freeze Ahead of SPAC Debut

A New York court ordered the freezing of $560 million in assets held by entities controlled by Renren Inc. Chief Executive Officer Joseph Chen, Softbank Group Corp. and others, an amount pegged to a stake in personal-finance startup Social Finance Inc., which is slated for a blank-check merger this week.

Chen, who sits on SoFi’s board, Renren co-founder David Chao and Softbank are among the defendants in a 2018 suit brought by shareholders who claim the Chinese social networking company’s insiders and biggest investors engaged in self-dealing when they spun off its most valuable assets at artificially low ...