Robinhood Repurchased Sam Bankman Fried’s Stake For 5 Million
Robinhood Repurchased Sam Bankman Fried’s Stake For 5 Million

Crypto and stock trading platform Robinhood (HOOD) has executed a nine-figure buyback of its own shares from FTX’s former executives, including disgraced boss Sam Bankman-Fried and his fellow co-founder Gary Wang.

The purchase secured 55,273,469 HOOD shares worth $605.7 million.

  • Robinhood entered into the purchase agreement with the United States Marshal Service (USMS) on August 30, and closed the transaction the following day.
  • “The Company funded the purchase of the Shares from corporate cash available from its balance sheet,” stated the agreement’s Form 8-K filing on Thursday.
  • Robinhood’s Board of Directors had already authorized the company to pursue purchasing most or all of the shares on February 8, 2023. Before that, Bankman-Fried and Wang owned the shares via the former’s hedge fund Emergent Fidelity Technologies, which filed for bankruptcy at the time.
  • The government confiscated close to $700 million worth of Bankman-Fried’s assets in January, including $455 million worth of HOOD shares, despite his lawyers’ fight to keep them. Prosecutors believe those shares were purchased using former FTX customers’ stolen money.
  • Robinhood’s average purchase price per share was $10.96 – below the market’s current trading value of $11.18.
SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.

Andrew Throuvalas

Source link

You May Also Like

Bittrex Set to Face Enforcement Actions from US SEC

It is becoming a trend that the SEC is choosing enforcement actions…

Binance v SEC Lawsuit Update September 17: Problems With Documentation and More

The US Securities and Exchange Commission (SEC) has claimed that Binance has…

MakerDAO Plots New AI-Inspired Blockchain, Publishes Roadmap

The new blockchain called NewChain will be closely linked with Ethereum, promising…

Nigerian crypto foreign investment is at a record low: Study

The largest economy in Africa has a foreign investment problem despite exponential…