Yahya 
FTX, a bankrupt crypto exchange, signed a deal with Emergent Technologies, founded by Sam Bankman-Fried’s to settle $600 million+ Robinhood shares dispute.
And as we understand from a motion filed by FTX CEO John Ray III on September 6 in the Delaware Bankruptcy Court, FTX will pay Emergent $14 million in administrative expenses in exchange for the withdrawal of Emergent’s claim to 55 million shares in Robinhood.
The settlement also frees the way for Emergent to fast track the payment of the Antigua bankrupt case. FTX pointed out that this is in line with its reorganization plan, saying that it seeks to retrieve the money for the creditors and not risking more on the expensive litigations.
John Ray III averred that the purchase was made upon smooth arm’s length bargaining which means that there were no cases of bias when arriving at the transaction.
Lemon Bair, the owner of Emergent, first bought the Robinhood shares in May 2022 when he transacted with Bankman Fried and Alameda Research. After the failure of FTX in November 2022, different entities such as FTX, Block Fi, and Emergent laid claim to the shares, which was taken by the U. S. Department of Justice in January 2023.
These shares were later sold back to Mr Rogers, better known as Robinhood for about $606 million in early September.
Emergent applied for Chapter 11 bankruptcy in February 2023, just before Bankman-Fried was given a 25-years sentence for fraud in regards to the FTX and other crypto companies’ failures.
Where the settlement motion hearing is scheduled for Oct. 22, the kind of hearing is not made known.
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