Crypto Stocks Keep Selling As Bear Market Continues

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HOOD stock hits monthly lows as investors fear the liquidation of 56 million shares. While other crypto stocks like COIN and MSTR continue their downward trend.

The bears are tightening their grip on crypto stocks as Coinbase (COIN), MicroStrategy (MSTR) and Robinhood (HOOD) continue their downward trend.

Recently, in a court filing, Sam Bankman-Fried admitted to borrowing approximately $546 million from Alameda Research to acquire a 7.6% stake in the stock and crypto investment platform Robinhood.

Custody of the shares rests with a special purpose holding company, Emergent Fidelity Technologies, owned 90% by Sam Bankman-Fried and 10% by Gary Wang. It is feared that these HOOD shares will be liquidated.

Sam Bankman-Fried used client funds to purchase HOOD stock?

An individual investor, Yonathan Ben Shimon, is one of several creditors claiming ownership of HOOD Shares. He claims that FTX may have used investor funds to acquire a 7.6% stake in Robinhood.

Emergent acquired a 7.6% stake in Robinhood for about $650 million possible using funds improperly diverted from those invested by me and others with FTX. I know nothing about the source of the funds used to acquire the 7.6% stake in Robinhood beyond the fact that it was allegedly working capital, the court document reads.

However, Sam Bankman-Fried explains that he secured funds from Alameda to buy HOOD stock with FTX co-founder Gary Wang.

The community believes it was client funds the entire time, as Sam Bankman-Fried is accused of embezzling funds to make dodgy investments through Alameda.

Crypto Stocks Continue Selling

Amid the chaos around HOOD stock ownership, the price is trading around monthly lows. HOOD is trading at $7.73, more than 90% below its all-time high of $85.

Source: Trading View

Not just HOOD, bulls are also struggling to take control of other crypto-related stocks. COIN is trading at its all-time low of $32.66. The stock was already down more than 90% from its all-time high and has fallen another 28% this month. MicroStrategy’s stock price is down more than 25% this month.

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Disclaimer

BeInCrypto has reached out to a company or individual involved in the story for an official statement on recent developments, but has yet to receive a response.

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