Emergent Fidelity Technologies, co-founded by FTX founder Sam Bankman-Fried and former executive Gary Wang, declared Chapter 11 bankruptcy late Friday.
Emergent Fidelity was the company that held 56 million shares of Robinhood Markets (HOOD) stock, an asset that quickly became a focus of several companies due to the value it could bring FTX creditors. The shares were also pledged as collateral to the now-bankrupt cryptocurrency lender BlockFi, which filed its own claim last year.
Bankman-Fried has argued that he should keep ownership of the shares. Nonetheless, federal authorities took control of the assets in January.
At today’s closing price, those 56 million Robinhood shares are worth more than $600 million. According to Bloomberg, Emergent Fidelity’s only other asset is $20.7 million in cash.
Bankman-Fried owns 90% of Emergent Fidelity, with the remaining 10% owned by FTX co-founder Wang.
The bankruptcy filing of Emergent Fidelity could not be obtained immediately. At this time, it is unclear what debts Emergent is claiming.