FTX and Alameda File Request to Freeze $450 Million in Robinhood Stock in New York Court

FTX Trading Ltd. and Alameda Research have filed a request to freeze 56 million shares of Robinhood stock, worth roughly $450 million, in a New York court. According to court documents, multiple creditors, including the now-defunct crypto lending firm Blockfi, are seeking access to the funds, which are currently custodied at ED&F Man Capital Markets Inc. in New York City.

In their request, FTX and Alameda argue that the debtors, including Sam Bankman-Fried, have at least a "colorable" claim to the ownership of the shares and have asked the court to enforce an automatic stay on claims for the assets. The request states that the fact that multiple creditors are all seeking possession of the shares demonstrates the need for the asset to be frozen until the court can determine a fair resolution for all creditors.

This development comes as FTX and Alameda seek to recover funds from various debtors, including Bankman-Fried's subsidiary Emergent Fidelity Technologies. It remains to be seen how the court will rule on the request to freeze the Robinhood shares, but the case highlights the ongoing challenges facing FTX and Alameda as they navigate the complex world of financial disputes and creditor claims.