Robinhood Pays $606M to Purchase Back SBF’s Stake from the Authorities

Stock and crypto trading company Robinhood has declared to buy 55M shares of a platform formerly held by Sam Bankman-Fried. He is known as the former CEO of the now-defunct crypto exchange called FTX. A recent blog post that Robinhood published on the 31st of August disclosed the buyout of up to 55,273,469 shares. The platform is reportedly paying up to $606 million for the respective shares.

Robinhood Buys Back FTX Founder SBF’s Stake for $606 Million

The buyout is witnessed after a submission with the US Securities and Exchange Commission. Originally, the shares belong to Bankman-Fried and Gary Wang (the co-founder of FTX) via Emergent Fidelity Technologies. The United States Department of Justice seized the respective assets back in January this year. Following that, the shares were expected to be sold.

Also Read: FTX Stops User Accounts Access Due to Kroll Cyber Hack

The board of directors at Robinhood declared the authorization of the contract in the firm’s report for Q4 2022. It also emerged in an SEC filing on the 30th of August. The filing stated that the United States District Court for the Southern District of New York authorized the buyout. It also mentioned that the buyout is clear and free of claims, encumbrances, liens, and interests.

The Platform Shares Optimism about the Latest Development

Robinhood carried out the repurchase contract with the United States Marshals Service. Jason Warnick, the chief financial officer at Robinhood, also commented on the respective development. He disclosed that the platform is excisted to have accomplished the buyout of the respective shares.

As per him, the company looks forward to implementing its growth strategy on behalf of its shareholders and clients. Bankman-Fried’s holding firm Emergent Fidelity Technologies, submitted a bankruptcy filing in February this year. The firm had already been targeted by the crypto lending platform BlockFi over Robinhood’s 55M shares.