BlockFi Sues a Bankman-Fried Company to Recover Robinhood Shares

Now those Robinhood shares are at the center of a lawsuit filed by BlockFi in the hours after the lender petitioned for bankruptcy protection in the very same New Jersey court, documents show.

Named in the suit are Bankman-Fried’s Emergent Fidelity Technologies, and ED&F Man Capital Markets, which allegedly failed to properly broker the pledged assets in question, according to The Block.

After Emergent entered a state of default with BlockFi, the lender sought to take custody of collateral shares of Robinhood as per the forbearance terms of the agreement, however, "EDFM has refused to transfer the collateral to BlockFi,” the complaint said.