Court docket paperwork within the Caribbean are revealing new ways in which former FTX CEO Sam Bankman-Fried misallocated buyer funds earlier than the alternate’s collapse.
Within the official Caribbean Supreme Court docket affidavit from Sam Bankman-Fried, SBF places it on record that funds have been borrowed from Alameda Analysis to buy shares in Robinhood.
First, Bankman-Fried confirms that the shell company Emergent Constancy Applied sciences Ltd acquired over 56 million shares in Robinhood.
“Emergent did purchase 56,273,469 shares in Robinhood Markets Inc as said by the Claimant in paragraph 7 of his affirmation…
I consider that the overall buy value was lower than the sum of $648,293,886.33 referred to by the Claimant…
I think that the overall acquisition price was $546,381,737.10.”
Sam Bankman-Fried then explains that he and FTX co-founder Gary Wang agreed to include Emergent within the Caribbean “to carry the investments that we wished to make into the shares of Robinhood.” SBF says he was made the only real director with 900 shares in Emergent going to him and 100 shares going to Gary – a shareholding ratio that continues to be to this present day.
SBF confirms that Emergent’s buy of Robinhood shares was funded by capital from Alameda Analysis.
“So as to capitalize Emergent in order that it might make the investments into Robinhood, Gary and I agreed to borrow funds from Alameda Analysis Ltd.
These funds have been capitalized into Emergent and it used these funds to amass the shares in Robinhood.”
The Caribbean courtroom paperwork are the most recent twist within the FTX collapse and SBF’s subsequent fall from grace. Bankman-Fried is at present confined to a Northern California dwelling after posting a $250 million bond, the biggest pretrial bond ever posted, whereas awaiting trial for fraud expenses within the US.
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