HomeBlockchainRobinhood Agrees $600 Million Buyback of Seized Sam Bankman-Fried HOOD Stake From...

Robinhood Agrees $600 Million Buyback of Seized Sam Bankman-Fried HOOD Stake From US Marshal Service

Supply: AdobeStock / Askar

On August 30, Robinhood entered right into a $605.7 million (HOOD) share buyback settlement with the US Marshal Service (USMS) to reclaim shares previously held by Identical Bankman-Fried (SBF) by way of Emergent Constancy Applied sciences.

At first of this yr, the US government took possession of the 55 million HOOD shares owned by Bankman-Fried and Gary Wang, co-founders of FTX, by way of their holding firm, Emergent Constancy Applied sciences, after Bankman-Fried’s cryptocurrency alternate, FTX, and Emergent filed for chapter safety in 2022.

Final November, simply six months earlier than Bankman-Fried’s firm filed for chapter, he disclosed a 7.6% stake in Robinhood.

Nonetheless, he clarified that he had no intention of taking management of the retail buying and selling platform. At the moment, he expressed pleasure about Robinhood’s enterprise prospects and potential collaboration alternatives with FTX.

In keeping with a US Securities and Trade Fee Submitting dated August 30, the US District Courtroom for the Southern District of New York authorized the share repurchase settlement on August 28.

This settlement covers 55.3 million shares priced at $10.96 every. The approval from the US District Courtroom for the Southern District of New York permits Robinhood to proceed with repurchasing this stake from SBF.

In February, Robinhood had initially introduced its intention to repurchase this stake and acquired authorization from its board to discover buying a good portion, if not all, of the inventory.

In response to this newest improvement, Robinhood’s shares skilled a pre-market buying and selling surge of over 3% when information of the buyback was revealed.

FTX Founder SBF Faces Authorized Battles Amid Chapter Fallout and Robinhood’s Partnership Shake-Up

Sam Bankman-Fried, or SBF, based the cryptocurrency alternate FTX Buying and selling after amassing important wealth.

Nonetheless, in November 2022, his firm declared chapter. SBF’s crypto journey started in 2017 when he began buying and selling Bitcoin (BTC) and co-founded Alameda Analysis, a quantitative buying and selling agency specializing in cryptocurrencies.

His web price skyrocketed to round $26 billion, primarily because of the surging worth of belongings like Bitcoin. Alameda Analysis achieved exceptional success by way of arbitrage buying and selling, and SBF grew to become a notable political donor in america.

Sadly, FTX, his cryptocurrency alternate, collapsed, wiping out his fortune.

SBF faces authorized troubles, together with fraud and conspiracy fees linked to the November 2022 downfall of his bankrupt alternate.

A Manhattan decide not too long ago ordered his imprisonment till his trial in November attributable to issues about potential witness tampering throughout his home arrest at his dad and mom’ Palo Alto, California, residence, which was secured with a $250 million bail.

In keeping with latest filings, SBF’s authorized workforce contends that his detention obstructs trial preparation. They’ve submitted a problem to his detention on the 2nd US Circuit Courtroom of Appeals, in search of momentary launch.

Within the meantime, SBF has entered a not-guilty plea to a revised indictment that features seven fees associated to FTX’s collapse, encompassing fraud and cash laundering.

In a latest improvement, Robinhood Markets terminated its partnership with Jump Trading, a Chicago-based participant in conventional finance that facilitated crypto transactions for the commission-free dealer.

Though on-chain information signifies the partnership led to July, neither firm has formally confirmed the termination.

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