Emergent Fidelity Technologies, an offshore entity of FTX's ( FTT-USD ) Sam Bankman-Fried that owns 55M shares of trading app Robinhood Markets ( NASDAQ: HOOD ), filed for Chapter 11 bankruptcy protection, Bloomberg reported Friday, citing court papers. At current market prices, Emergent Fidelity's Robinhood ( HOOD ) stake is worth $591.25M, though the U.S. government has already snatched it . Emergent, of which Bankman-Fried no longer controls, has no other assets except $20.7M in cash, the papers showed. HOOD slid 3.7% to $10.75 in midafternoon trading, accompanied by a risk-off day across asset classes. In November 2022, crypto lender BlockFi, in the midst of crypto exchange FTX's collapse, sued Emergent Fidelity to get the HOOD shares that were allegedly pledged to BlockFi three weeks earlier .
