Bankrupt crypto lender BlockFi has filed a motion to dismiss the bankruptcy case for Emergent Fidelity Technologies, the holding firm owned by Sam Bankman-Fried (SBF), founder and former CEO of FTX.
In the motion, filed on Thursday in the United States Bankruptcy Court for the District of Delaware, BlockFi argued that Emergent is not eligible for a bankruptcy case as it has no other assets than 56 million Robinhood shares.
Recall that Emergent filed for voluntary Chapter 11 bankruptcy protection on February 5, almost three months after FTX became insolvent.
The company, which is 90% owned by SBF and 10% by former FTX executive Gary Wang, had just $20.7 million in cash, 56 million Robinhood shares worth roughly $600 million, and no other assets.
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