Robinhood, the popular stock trading app, has reached an agreement with the U.S. Marshal Service to repurchase the shares seized from Sam Bankman-Fried, the CEO of cryptocurrency exchange FTX. This move comes after Bankman-Fried’s assets were seized as part of an ongoing investigation. The buyback deal will allow Robinhood to restore the shares to Bankman-Fried, resolving the legal dispute. This news comes as a relief for both Robinhood and Bankman-Fried, signaling a positive development in their relationship.
Title 1: Robinhood Receives Approval to Repurchase Seized Shares from Sam Bankman-Fried
Robinhood has received approval from a federal court in the Southern District of New York to repurchase shares that were seized from Sam Bankman-Fried by the U.S. Marshal Service (USMS). The company will be allowed to buy back the shares seized from Bankman-Fried’s Emergent Fidelity Technologies for a total of $605.7 million, according to a statement released by Robinhood.
Title 2: Robinhood’s Strong Presence in the Crypto Market Highlighted by Substantial Holdings in Bitcoin and Ethereum
Cash, stocks, and crypto:
As part of the agreement, Robinhood plans to repurchase 55.3 million shares from Bankman-Fried at a price of $10.96 per share. The funds for the repurchase will come from Robinhood’s corporate cash, which holds over $6 billion in cash and investments as reported in its latest quarterly report.
Previously, Bankman-Fried held a 7.6% stake in Robinhood but had no intentions of gaining control over the trading platform. He had shown optimism about Robinhood’s business prospects and potential partnerships. However, the unexpected bankruptcy of FTX, along with the seizure and dissolution of his fortune estimated to be worth $26 billion, drastically changed the situation.
Bankman-Fried had fiercely opposed the bankruptcy exchange’s claim over the Robinhood shares worth $450 million. He argued that he and Gary Wang were the primary holders of the shares, countering the claims made by Alameda Research and other entities involved in the FTX bankruptcy.
In the crypto market, Robinhood has established a strong presence, evident through its substantial holdings in Bitcoin (BTC) and Ethereum (ETH). Arkham Intelligence reports that Robinhood owns the fifth-largest Ethereum wallet, with a total value of $2.54 billion in ETH and more than 100 ERC-20 tokens collectively valued at over $177 million.
Additionally, Robinhood also possesses the third-largest Bitcoin wallet globally, worth approximately $3 billion in BTC. These significant holdings demonstrate Robinhood’s confidence in the cryptocurrency market and its commitment to providing its users with access to these digital assets.
In conclusion, Robinhood’s repurchase of shares from Sam Bankman-Fried has been approved, allowing the company to regain control over the shares formerly seized by the U.S. Marshal Service. Furthermore, Robinhood’s robust presence in the crypto market, with substantial holdings in Bitcoin and Ethereum, solidifies its position as a leading platform for cryptocurrency trading.