July 10, 2024
Robinhood Obtains 55 Million Shares from Ex-FTX CEO SBF.
Latest Cryptocurrency News

Robinhood Acquires 55 Million Shares from Former FTX CEO SBF

Robinhood, the cryptocurrency and stock trading platform, has officially acquired over 55 million shares previously held by the former CEO of FTX, Sam Bankman-Fried, also known as SBF.

In accordance with an announcement made in a blog post dated August 31, Robinhood successfully completed the acquisition of 55,273,469 shares for an approximate sum of $606 million. This transaction followed a filing with the United States Securities and Exchange Commission (SEC). The shares, originally owned by Bankman-Fried and FTX co-founder Gary Wang through their company, Emergent Fidelity Technologies, were seized by the U.S. Department of Justice in January.

This acquisition had been widely anticipated, with Robinhood’s board of directors granting approval for the deal as stated in the company’s Q4 2022 report. Additionally, an SEC filing dated August 30 confirmed that the U.S. District Court for the Southern District of New York had authorized the acquisition, declaring it free and clear of any claims, interests, liens, and encumbrances.

The repurchase agreement was arranged between Robinhood and the U.S. Marshal Service. It’s worth noting that Emergent Fidelity Technologies, Bankman-Fried’s holding company, filed for bankruptcy in February. Prior to that, it had faced legal challenges from crypto lending firm BlockFi, which also filed for bankruptcy in the aftermath of FTX’s collapse, concerning the 55 million Robinhood shares pledged as collateral.

Amid FTX’s bankruptcy proceedings, legal disputes had arisen involving SBF, BlockFi, and FTX creditor Yonathan Ben Shimon, all vying for ownership of the approximately $600 million worth of Robinhood shares. Bankman-Fried’s legal team contended that he had a rightful claim to these assets for his criminal defense. As of now, Bankman-Fried is in custody after his bail was revoked by a judge on August 11, and he is scheduled to stand trial for the first time on October 3.

Following this acquisition, the price of Robinhood shares on the Nasdaq experienced an approximately 4% increase, rising from $10.85 to $11.34 at the time of this publication. In recent developments, it was revealed that Robinhood is the holder of the fifth-largest Ether wallet, valued at more than $2.5 billion.

Image by freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

Related posts

Lido Finance’s Decision to Sunset Operations on Solana: A Decentralized Staking Protocol Shift

Christian Green

US Officials to Transfer Sam Bankman-Fried to California Prison

Robert Paul

Robinhood Delists ADA, MATIC, and SOL Following SEC Labeling Them as Securities

Kevin Wilson

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Please enter CoinGecko Free Api Key to get this plugin works.