Sam Bankman-Fried, the founder of cryptocurrency exchange FTX, borrowed over $546 million from Alameda Research, the exchange’s sister company, to fund the purchase of Robinhood shares.
Bankman-Fried and FTX co-founder Zixiao “Gary” Wang took out four loans from Alameda through promissory notes between April and May, according to an affidavit filed by Bankman-Fried in the Antigua and Barbuda High Court.
The loans were used to fund Bankman-Fried’s shell company, Emergent Fidelity Technologies, which acquired a 7.6% stake in brokerage firm Robinhood in May for $648 million.
The revelation of the loans could complicate the ongoing legal dispute over the ownership of the Robinhood shares, which are worth around $430 million.
BlockFi is suing Emergent for the shares, which were allegedly pledged as collateral for BlockFi’s loans to Alameda, while Bankman-Fried and FTX creditor Yonathan Ben Shimon are also laying claim to the shares.
FTX has asked for assistance from a U.S. bankruptcy judge to prevent BlockFi from claiming the shares, insisting that they are owned by Alameda.