Robinhood bought back Sam Bankman-Fried’s stake from US gov’t for $606M


Cryptocurrency and inventory buying and selling platform Robinhood has introduced the acquisition of greater than 55 million shares of the agency beforehand held by former FTX CEO Sam Bankman-Fried, often known as SBF.

According to an Aug. 31 weblog publish, Robinhood completed a purchase order of 55,273,469 shares for roughly $606 million following a submitting with the United States Securities and Exchange Commission. The shares, initially held by Bankman-Fried and FTX co-founder Gary Wang via Emergent Fidelity Technologies, have been seized in January by the U.S. Department of Justice. 

The buy had been anticipated. Robinhood’s board of administrators announced the approval of the deal within the firm’s This fall 2022 report, and an Aug. 30 SEC submitting said the U.S. District Court for the Southern District of New York had permitted the acquisition “free and clear of any claims, interests, liens and encumbrances.” Robinhood made the repurchase settlement with the U.S. Marshals Service.

“We are happy to have completed the purchase of these shares and look forward to executing on our growth plans on behalf of our customers and shareholders,” mentioned Robinhood chief monetary officer Jason Warnick.

Emergent Fidelity Technologies, Bankman-Fried’s holding firm, filed for bankruptcy in February. The firm had already been a target of crypto lending agency BlockFi — which filed for chapter following the collapse of FTX — over the 55 million Robinhood shares pledged as collateral. 

Related: Sam Bankman-Fried’s lawyers argue previous FTX legal team led him to act ‘in good faith’

Amid FTX’s personal chapter proceedings, SBF, BlockFi and FTX creditor Yonathan Ben Shimon had been preventing authorized battles over possession of the roughly $600 million in Robinhood shares. Bankman-Fried’s authorized staff argued the previous FTX CEO had a declare to the property to pay for his prison protection. Currently remanded to jail following a choose revoking his bail on Aug. 11, Bankman-Fried is predicted to seem in courtroom for his first trial beginning on Oct. 3. 

The value of Robinhood shares on Nasdaq elevated roughly 4% following the acquisition, from $10.85 to $11.34 on the time of publication. Crypto sleuths lately revealed that the firm was the proprietor of the fifth-largest Ether (ETH) pockets, value greater than $2.5 billion.

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