FTX Settles $600 Million Dispute Over Robinhood Shares

FTX, the collapsed crypto exchange, has agreed to pay Emergent Technologies $14 million to resolve a dispute involving over $600 million worth of Robinhood shares.

This deal, announced on September 6 by FTX CEO John Ray III, will cover administrative costs related to Emergent’s withdrawal of a petition for 55 million Robinhood shares and cash. The settlement also paves the way for Emergent to expedite its bankruptcy proceedings in Antigua.

FTX stated that this agreement will help recover more assets for creditors and minimize further litigation expenses, marking a significant step in its reorganization efforts.

The shares were initially acquired by Emergent in May 2022 through an arrangement with Sam Bankman-Fried and Alameda Research. Following FTX’s collapse and subsequent Justice Department seizure, the shares were sold back to Robinhood in September 2023.

Emergent Technologies, an investment firm co-founded by Bankman-Fried, filed for Chapter 11 bankruptcy in February 2023. Bankman-Fried was sentenced to 25 years in prison in March for his involvement in the crypto fraud that led to the downfall of multiple firms, including FTX.