FTX US and Liquidators announce cooperation agreement as Sam Bankman-Fried fights for his Robinhood shares

FTX saga noted a rather positive development today in the form of a cooperation agreement between its US arm and Bahamian joint provisional liquidators. This will allow for the bankruptcy proceedings to result in mutual agreement as well as ensure maximum recovery for creditors. On the other hand, FTX founder Sam Bankman-Fried is fighting for the ownership of $450 million worth of Robinhood shares.

FTX.US and liquidators join hands

FTX and its US arm announced bankruptcy last November, and since then, the company has been locking horns with the court-appointed Bahamian liquidators. This finally came to an end on Friday after FTX’s US division and the joint provisional liquidators announced a cooperation agreement. 

Per the agreement, both parties will be working together to mutually agree upon the bankruptcy proceedings. This includes sharing information as well as exploring alternatives for maximizing stakeholder recoveries. Commenting on the same, FTX’s current CEO, John Ray, stated,

“There are some issues where we do not yet have a meeting of the minds, but we resolved many of the outstanding matters and have a path forward to resolve the rest.”

Brian J. Simms of the join provision liquidators said that the shared objective is to find the best solution for customers and creditors of FTX. The agreement also confirmed that until both parties reach a resolution, the digital assets controlled by the Securities Commission of the Bahamas will be safeguarded by the regulatory body.

Sam Bankman-Fried needs the Robinhood shares

Sam Bankman-Fried and his lawyers filed a motion in the court to attempt and gain control over the $450 million Robinhood shares tied to his name. As per the filing, Bankman-Fried’s lawyers have claimed that the shares are not part of the bankruptcy estate since they are controlled by Emergent Fidelity Technologies. 

They argued that FTX could not assert ownership unless they proved that Alameda fraudulently handed it to Emergent Fidelity Technologies. They further added that Sam Bankman-Fried required these funds to pay for his defense. Sam Bankman-Fried’s plea came after the Department of Justice attempted to seize the asset this week.