Robinhood buys back former Sam Bankman-Fried stake for $606 million
Quick Take
- The crypto-friendly trading app Robinhood bought back over 55 million shares worth $605.7 million that used to be controlled by former FTX CEO Sam Bankman-Fried.
The crypto-friendly trading app Robinhood bought back a sizable portion of shares that were formerly owned by a company founded by Sam Bankman-Fried.
The firm bought back 55.3 million shares at around $10.96 each for a total of $605.7 million. The purchase was completed on Aug. 31, with Robinhood buying them from the U.S. Marshal Service on behalf of the government, according to a Friday filing from the Securities and Exchange Commission.
"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," Jason Warnick, Chief Financial Officer of Robinhood Markets, said in a statement.
Former Sam Bankman-Fried stake
The U.S. Department of Justice had seized the shares from Emergent Fidelity Technologies, which was founded by former FTX CEO Sam Bankman-Fried, earlier this year. Bankman-Fried had tried to protect Emergent's Robinhood shares from debtors in January, stating in court filings that the funds would finance his legal defense.
Bankman-Fried had his $250 million bail revoked on Aug. 11 and is preparing for his October trial from a New York jail.
Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
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