The Board of Directors of the Robinhood trading platform has agreed on a $578 million buyback offer for the company’s 55 million shares previously held by Sam Bankman-Fried.
Sam Bankman-Fried acquired Robinhood stock for $650 million in May 2022 through Emergent Fidelity Technologies, a subsidiary of the now bankrupt FTX Group. In January, the Justice Department notified the community that as part of the FTX bankruptcy case, all of Bankman-Fried and Emergent’s shares in Robinhood were seized.
Robinhood CFO Jason Warnick said the company is in talks with the Justice Department to buy back 55 million shares, now valued at $578 million, but was unable to determine a timeline for completing the process.
“Our board has authorized us to buy back shares in Robinhood, which were originally acquired by Emergent Fidelity Technologies, a subsidiary of FTX,” Warnick said.
The legal conflict of this issue is that Bankman-Fried previously used Robinhood shares as collateral for a loan on the BlockFi crypto lending platform. After the collapse of the exchange in November 2022, BlockFi filed a lawsuit to transfer the collateral in the form of shares to the ownership of the platform.
Source: Bits
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