Emergent Fidelity Technologies was co-founded late Friday by FTX founder Sam BankmanFried and ex-executive Gary Wang. It filed for Chapter 11 bankruptcy protection.
Emergent Fidelity was the company that held 56 million shares Robinhood Markets stock (HOOD). This asset quickly became a key subject of interest by several companies because of the potential value it would bring to FTX creditors. These shares were also pledged to BlockFi, a bankrupt crypto lender. BlockFi placed its claim last year.
Bankman-Fried argued that he should keep control of the shares. Federal officials took control of the assets however in January.
These 56 million Robinhood shares are worth more that $600 million today at the closing price. Bloomberg reported Emergent Fidelity’s only other asset was $20.7 million cash.
Emergent Fidelity is 90% owned by Bankman-Fried, with FTX co-founder Wang holding the remaining 10%.
Emergent Fidelity could not be obtained immediately. At this moment, it is not clear what debts Emergent claims.