Bankrupt cryptocurrency lender BlockFi is suing Sam Bankman-Fried to seize shares in Robinhood that the FTX founder allegedly pledged as collateral just days before his exchange collapsed.
The lawsuit on Monday came just hours after BlockFi filed for bankruptcy protection having suffered “a severe liquidity crunch” triggered by the failure of Bankman-Fried’s FTX exchange.
BlockFi’s complaint, which was filed in the same New Jersey court where it initiated bankruptcy proceedings, targeted Bankman-Fried’s Emergent Fidelity Technologies vehicle and demanded it turn over unspecified collateral.
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