Robinhood redeemed Sam Bankman-Fried’s stake from United States gov’ t for $606M

Cryptocurrency and stock trading platform Robinhood has actually revealed the purchase of more than 55 million shares of the company formerly held by previous FTX CEO Sam Bankman-Fried, likewise called SBF.

According to an Aug. 31 post, Robinhood finished a purchase of 55,273,469 shares for approximately $606 million following a filing with the United States Securities and Exchange Commission. The shares, initially held by Bankman-Fried and FTX co-founder Gary Wang through Emergent Fidelity Technologies, were taken in January by the U.S. Department of Justice.

The purchase had actually been anticipated. Robinhood’s board of directors revealed the approval of the handle the business’s Q4 2022 report, and an Aug. 30 SEC filing stated the U.S. District Court for the Southern District of New york city had actually authorized the purchase “complimentary and clear of any claims, interests, liens and encumbrances.” Robinhood made the repurchase contract with the U.S. Marshals Service.

” We enjoy to have actually finished the purchase of these shares and eagerly anticipate carrying out on our development intend on behalf of our consumers and investors,” stated Robinhood chief monetary officer Jason Warnick.

Emergent Fidelity Technologies, Bankman-Fried’s holding business, declared insolvency in February. The business had actually currently been a target of crypto financing company BlockFi– which declared insolvency following the collapse of FTX– over the 55 million Robinhood shares vowed as security.

Related: Sam Bankman-Fried’s attorneys argue previous FTX legal group led him to act ‘in excellent faith’

Amidst FTX’s own insolvency procedures, SBF, BlockFi and FTX financial institution Yonathan Ben Shimon had actually been combating legal fights over ownership of the approximately $600 million in Robinhood shares. Bankman-Fried’s legal group argued the previous FTX CEO had a claim to the properties to spend for his criminal defense. Presently remanded to prison following a judge withdrawing his bail on Aug. 11, Bankman-Fried is anticipated to appear in court for his very first trial beginning on Oct. 3.

The rate of Robinhood shares on Nasdaq increased approximately 4% following the purchase, from $10.85 to $11.34 at the time of publication. Crypto sleuths just recently exposed that the company was the owner of the fifth-largest Ether (ETH) wallet, worth more than $2.5 billion.

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