Ethereum

<ul>
 <li>FTX settles $600M Robinhood shares dispute with Emergent for $14M.</li>
 <li>The agreement accelerates FTX’s creditor repayments and bankruptcy resolution.</li>
</ul>
Bankrupt crypto exchange FTX has reached a settlement with Emergent Fidelity Technologies, a firm co-founded by Sam Bankman-Fried, over more than $600 million worth of Robinhood shares. The deal, disclosed in a motion by FTX CEO John Ray III on September 6 in a Delaware Bankruptcy Court, involves FTX paying $14 million to cover <a href="https://thenewscrypto.com/ghana-proposes-new-stringent-regulations-for-crypto-exchanges/" target="_blank" rel="noopener noreferrer nofollow">administrative</a> costs for Emergent’s withdrawal of its claim to the disputed Robinhood shares.
The agreement comes as FTX aims to maximize value for creditors while minimizing litigation costs. Emergent had acquired 56 million Robinhood shares, valued at $600 million. It is through an agreement involving Bankman-Fried and Alameda Research in May 2022. However, following its collapse in November 2022, ownership of the shares was contested by multiple parties, including FTX, BlockFi, <a href="https://x.com/SBF_FTX" target="_blank" rel="noopener noreferrer nofollow">Bankman-Fried</a>, and Emergent. The shares were eventually seized by the U.S. Department of Justice in January 2023 and were repurchased by Robinhood on September 1 for $606 million.
<div class="wp-block-image">
 <figure class="aligncenter size-full"><img decoding="async" width="922" height="445" src="https://thenewscrypto.com/wp-content/uploads/2024/09/image-29.png" alt="" class="wp-image-107658" srcset="https://thenewscrypto.com/wp-content/uploads/2024/09/image-29.png 922w, https://thenewscrypto.com/wp-content/uploads/2024/09/image-29-300x145.png 300w, https://thenewscrypto.com/wp-content/uploads/2024/09/image-29-768x371.png 768w" sizes="(max-width: 922px) 100vw, 922px">
 <figcaption class="wp-element-caption">
 Snippet from FTX’s Global Settlement Agreement motion 
 </figcaption>
 </figure>
</div>
Moreover, FTX stated that the settlement with Emergent is crucial in advancing its reorganization efforts. And expediting the return of funds to its creditors. Additionally, the deal clears the way for Emergent to resolve its bankruptcy proceedings in Antigua. In support of the agreement, Ray emphasized that the settlement was the product of “good faith, arm’s length negotiations” and free of collusion.’
<h3 class="wp-block-heading" id="h-further-details">Further Details</h3>
The dispute over the <a href="https://x.com/RobinhoodApp" target="_blank" rel="noopener noreferrer nofollow">Robinhood</a> shares is part of the broader fallout from FTX’s collapse. It led to multiple lawsuits and claims. In a separate development a month earlier, a U.S. court ordered it to pay $12.7 billion in restitution to its customers. It was after the exchange was accused of misappropriating deposits for risky investments. A hearing on the Emergent settlement is scheduled for October 22.
The resolution with Emergent marks a step for it as it seeks to streamline its bankruptcy proceedings and focus on repaying its <a href="https://thenewscrypto.com/fbi-reports-record-5-6b-in-losses-from-crypto-scams-in-2023/" target="_blank" rel="noopener noreferrer nofollow">crypto</a> creditors.
Highlighted Crypto News Today: <a href="https://thenewscrypto.com/metalpha-deposits-ethereum-to-binance-amid-eth-price-recovery-signals/" target="_blank" rel="noopener noreferrer nofollow">Metalpha Deposits Ethereum To Binance Amid ETH Price Recovery Signals</a>

FTX Strikes Deal with Emergent Over $600M Robinhood Shares

Table of Contents

TheNewsCrypto

Other articles published on Sep 10, 2024

Kujira Forms Rujira Alliance with THORChain, Launches RUJI

Major XRP Ledger (XRPL) Amendment About to Go Live

Metaplanet Inc. Teams Up with SBI Group for Bitcoin Trading and Custody in Japan

Ex-Ethereum Foundation Board Member Yessin Schiegg Joins Camino Network Foundation Ahead of CAM T...

Peter Brandt Realizes BTC Potential to Hit $150K as Market Gains Bulls

Rapid Surge For Quant, RollBlock and Sui Showcasing Green Graphs: Here’s The Score…

Join our free newsletter for daily crypto updates!