Robinhood to Buy Back SBF’s Stake for Over $605 Million

Online broker Robinhood is going to bargain backmost the involvement purchased by a institution of crypto speech FTX laminitis Sam Bankman-Fried (SBF). The fintech intends to wage $605.7 cardinal for the shares that were transferred to the custody of the U.S. authorities aft the bankruptcy of SBF’s businesses.

Robinhood to Proceed With Planned Buyback of Shares From USMS

Online banal and crypto brokerage Robinhood Markets announced connected Friday it had entered into a banal repurchase statement with the United States Marshals Service (USMS) for shares acquired by crypto entrepreneur Sam Bankman-Fried’s Emergent Fidelity Technologies.

The banal was seized aft FTX and Emergent filed for bankruptcy successful 2022 and aboriginal transferred to the custody of the U.S. government, Reuters noted successful a report. The illness of the exchange, 1 of the largest successful the crypto space, led to the apprehension and indictment of SBF, whose proceedings connected fraud and conspiracy charges is acceptable to statesman successful October.

The Menlo Park, California-headquartered fiscal services steadfast is going to wage $605.7 cardinal for 55.3 cardinal shares. Robinhood archetypal unveiled its program to bargain backmost the involvement successful February of this twelvemonth aft the company’s committee authorized it to prosecute purchasing astir oregon each of the stock.

The woody was approved by U.S. District Judge Lewis Kaplan successful Manhattan who oversees Sam Bankman-Fried’s case. In an bid issued connected Monday, helium described Robinhood’s projected stock acquisition statement arsenic “appropriate” and said it was “in the champion involvement of the applicable stakeholders.”

FTX collapsed amid liquidity issues and Bankman-Fried has been accused of misappropriating funds of the exchange’s customers worthy billions of U.S. dollars to bargain costly property, marque political donations, and concern his different businesses specified arsenic the Alameda Research hedge fund.

The crypto mogul announced the acquisition of a 7.6% involvement successful Robinhood Markets conscionable six months earlier his institution filed for bankruptcy successful November. At the time, helium said helium had nary volition to instrumentality power of the online broker but involvement successful partnering with the platform.

SBF was arrested successful the Bahamas and extradited to the United States astir a period aft the illness of FTX. He had been surviving nether location apprehension astatine his parents’ location successful California earlier his $250 cardinal enslaved was revoked and helium was jailed successful August for alleged witness tampering.

What bash you deliberation astir Robinhood’s determination to bargain backmost its shares? Let america cognize successful the comments conception below.