FTX co-founders Sam Bankman-Fried and Gary Wang borrowed tens of millions of dollars from Alameda Learn to compose a 7.6% stake in Robinhood.

In an affidavit filed with the high court docket in Antigua and Barbuda, Bankman-Fried acknowledged that he and Wang had borrowed $546 million from Alameda via four promissory notes issued between April and Would possibly perchance well.

The funds were utilized to capitalize Emergent Fidelity Applied sciences, a shell company owned by Bankman-Fried incorporated in Antigua and Barbuda. An SEC filing from Would possibly perchance well shows that Emergent purchased 56 million Robinhood shares which amounted to a 7.6% stake in the trading platform.

Bankman-Fried’s claims of possession over the Robinhood shares comes after crypto lender BlockFi and FTX’s liquidators made their agree with claims earlier this month. In a criticism filed in opposition to Emergent, BlockFi acknowledged that the Robinhood shares were pledged as collateral in opposition to a loan from Alameda Learn in a deal signed in November. The bankrupt crypto lender argued that it had the rights to raise custody of these shares on condition that Emergent defaulted on its duties.

Within the meantime, FTX liquidators sought to block any a form of parties from gaining preserve watch over over the shares, that were valued at approximately $450 million at the time of writing.

In a motion filed in a U.S. economic extinguish court docket on Dec. 22, the FTX liquidators acknowledged that the true fact that just a few collectors are all combating for rights to the shares emphasizes why the sources must remain frozen till disorders are resolved in the economic extinguish court docket.

“BlockFi scrambled to present protection to itself from impending losses on antecedent loans by threatening to behold cures in opposition to Alameda if Alameda did not pledge further collateral for those loans,” wrote the FTX liquidators in the criticism.