The insolvent cryptocurrency exchange FTX has finalized a deal with Emergent Fidelity Technologies concerning roughly $600 million in Robinhood shares.
The agreement, revealed in a filing by FTX CEO John Ray III in a Delaware Bankruptcy Court, included FTX disbursing $14 million to address administrative expenses related to Emergent’s retraction of its claim to the contested shares.
The agreement seeks to optimize value for creditors while reducing litigation expenses. Emergent bought 56 million shares of Robinhood, valued at $600 million, through an arrangement with Bankman-Fried and Alameda Research in May 2022.
The US Department of Justice confiscated the shares in January 2023, and Robinhood reacquired them on September 1 for $606 million. FTX asserted that the settlement is vital for progressing its reorganization initiatives and hastening the restitution of funds to its creditors.
The contention regarding the Robinhood shares is a component of the extensive repercussions stemming from FTX’s downfall, resulting in numerous lawsuits and claims. A hearing regarding the Emergent settlement is expected for October 22.
