FTX co-founders Sam Bankman-Fried and Gary Wang borrowed $546.4 million from Alameda Research to buy a 7.6% stake in Robinhood.
According to court documents, Sam Bankman-Fried has said it formed Emergent Fidelity Technologies with Wang to acquire the online broker’s securities.
He has addded:
“I borrowed $491,743,563.39 and Gary borrowed $54,638,173.71 from Alameda Research. All funds were capitalized in Emergent as working capital so that the company could buy shares in Robinhood.”
According to him, on April 30 they borrowed $316,667,182.50 and $35,185,242.50, and on May 25 – $175,076,380.89 and $19,452,931.21. The funds were paid in tranches within a few days before and after the dates specified in the application.