FTX case: Sam Bankman-Fried borrowed from Alameda to buy Robinhood shares

FTX case: Sam Bankman-Fried borrowed from Alameda to buy Robinhood shares

SBF’s secret cash cow – During his arrest in the Bahamas, Sam Bankman-Fried (SBF) made disclosures in writing, regarding funds it borrowed from Alameda, for the benefit of another of its companies.

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More than half a billion dollars to acquire Robinhood

In statement under oath filed with the High Court of Antigua and Barbuda on December 12, and which was made public on December 27, Sam Bankman-Fried admits that he contracted loans from Alameda via four promissory notes, between April and May. He also mentions the name of the co-founder of FTX, Zixiao “Gary” Wang.

Alameda issued loans of approximately $316.6 million and $35.1 million to Sam Bankman-Fried and Gary Wang on May 30. The company made two more loans of $175 million and $19.4 million to Sam Bankman-Fried on May 15.

These funds of more than $546 million loans from Alameda were used to finance Emergent Fidelity Technologies, the front company of the Antigua-based FTX founder, which had acquired a 7.6% stake at a price of $648 million in robinhood.

Will this SBF affidavit work against him as he tries to get those Robinhood shares back? The current FTX team wants continue to freeze these shares to protect them until a court can resolve the dispute over these assets in a fair manner for all parties involved.

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