Sam Bankman-Fried’s lawyers just filed a claim to keep his $450 million in Robinhood shares, arguing he needs them for legal fees

Sam Bankman-Fried's lawyers filed an objection in the bankruptcy proceedings of his exchange FTX to retain 56 million shares of his company.

The Delaware bankruptcy court case involves the shares of Robinhood. While Bankman- Fried owned that equity, he borrowed hundreds of millions of dollars from FTX's affiliated trading firm, Alameda Research, to purchase it through a separate entity called Emergent Fidelity Technology.

Bankman-Fried's Emergent pledged the stock as a security for more than $600 million in loans that BlockFi provided Alameda before it filed for Chapter 11. The U.S. Department of Justice is trying to get control of the FTX shares.

Bankman-Fried's lawyers argued that the corporation in control of the equity is not a party to the proceedings because it is not owned by Alameda. The shares were acquired in a filing with the SEC.

Bankman-Fried was charged with eight counts of federal fraud related to the collapse of FTX. A trial is set for October.

Bankman-Fried's lawyers wrote that the only way for FTX debtors to get the shares was to advance a fraudulent transfer claim or that the shares were transferred under suspicious circumstances.

The value of other holdings, such as FTX's proprietary FTT token, has evaporated as court proceedings continue in both the bankruptcy case and Bankman- Fried's criminal trial.

Lawyers for Bankman-Fried argued that he had to pay for his defence. Bankman- Fried has stated that he only has $100,000 left in his bank account.

Financial inability to defend oneself has serious consequences according to the lawyers.

Bankman-Fried's lawyers said that the FTX debtors face the possibility of economic loss.

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