Emergent owns 56 million shares of online brokerage Robinhood.
Emergent Fidelity Technologies, a company co-founded by FTX founder Sam Bankman-Fried and former executive Gary Wang, filed for Chapter 11 bankruptcy Friday evening. Emergent Fidelity is a company that owns 56 million shares of Robinhood Markets (HOOD), a property that quickly became the main topic of interest among many companies for the benefits it can bring to FTX investors.
The pledges were also made by crypto lender BlockFi, which filed its own lawsuit last year. Bankman-Fried argued that he should retain control of the shares. Nevertheless, the federal authorities decided to seize the property in January. Fifty-six million shares of Robinhood are worth more than $600 million at today’s closing price. Bloomberg reports that Emergent Fidelity’s only other assets are $20.7 million in cash. Bankman-Fried owns 90% of Emergent Fidelity, with FTX founder Wang owning the remaining 10%.
Emergent Fidelity’s unsecured financial statements are not immediately available. It is unclear what Emergent’s debt is saying at this time.