Robinhood strikes deal with U.S. Marshal Service to buy back shares seized from Sam Bankman-Fried
Robinhood‘s proposed deal to repurchase shares seized from Sam Bankman-Fried by the U.S. Marshal Service (USMS) has been approved by a federal court docket within the Southern District of New York.
Consequently, Robinhood might be allowed to purchase again shares seized from Bankman-Fried’s Emergent Constancy Applied sciences for $605.7 million, based on a press release launched by the corporate.
After FTX and Emergent filed for chapter safety final yr, the U.S. authorities took custody of Bankman-Fried’s Robinhood shares. In February, Robinhood announced its plan to repurchase the stake.
Money, shares, and crypto
In line with the settlement, Robinhood will purchase again 55.3 million shares at $10.96 every, using company money from its stability sheet, which featured over $6 billion in money and investments as of its newest quarterly report.
Bankman-Fried, who beforehand held a 7.6% stake in Robinhood, had expressed no intentions of gaining management over the buying and selling platform. He had voiced enthusiasm about Robinhood’s enterprise prospects, hinting at potential partnerships with the platform. Nevertheless, the sudden chapter of FTX led to the seizure and dissolution of his fortune, which was as soon as estimated to be round $26 billion.
The FTX founder sought to retain possession of Robinhood shares price $450 million. He vehemently disputed the bankrupt alternate’s “authorized claims” over the belongings, insisting that he and Gary Wang have been the first holders of the shares, not Alameda Analysis or every other entities implicated within the FTX chapter.
Robinhood has demonstrated sturdy power throughout the crypto market, underlined by its substantial holdings in Bitcoin (BTC) and Ethereum (ETH). In line with experiences by Arkham Intelligence, Robinhood holds the fifth-largest pockets on Ethereum, amounting to $2.54 billion in ETH and greater than 100 ERC-20 tokens collectively valued at over $177 million.
The buying and selling app firm additionally owns the third-largest Bitcoin pockets globally, holding about $3 billion price of BTC.
