Sam Bankman-Fried and his Stanford law professor parents, Joe Bankman and Barbara Fried are highly anxious legal fees will bankrupt the family. However, they received an unheard-of precedent by the Obama-appointed judge, Ronnie Abrams, granting a $250 million recognizant bond secured by his parents’ home valued at $4 million and a court-ordered ruling hiding two sureties. Judge Ronnie Abrams has since recused herself from the criminal case due to her husband’s firm relationship with FTX.
SBF’s latest and outrageous legal maneuver demands $450 million in Robinhood stock be handed over by the bankruptcy court to pay his legal bills.
SBF’s Alameda Research purchased the 56.3 million Robinhood shares (symbol HOOD) using investor and FTX customer funds for $648 million. Accordingly, SBF and Alameda Research should have filed the required SEC 13D filing for acquiring over 5% of Robinhood’s outstanding shares.
SBF then conveyed ownership to his off-shore Antigua corporation, Emergent Fidelity Technologies, secured by promissory notes to Alameda. Off-shoring is a strategy for tax avoidance, relaxed regulations, or asset protection. Emergent and SBF subsequently filed a 13D. The current market price of Robinhood has collapsed, resulting in a $189 million unrealized loss to Emergent or, in substance, FTX creditors.