Robinhood strikes deal with U.S. Marshal Service to buy back Sam Bankman-Fried’s seized shares

Robinhood‘s projected woody to repurchase shares seized from Sam Bankman-Fried by the U.S. Marshal Service (USMS) has been approved by a national tribunal successful the Southern District of New York.

As a result, Robinhood volition beryllium allowed to bargain backmost shares seized from Bankman-Fried’s Emergent Fidelity Technologies for $605.7 million, according to a connection released by the company.

After FTX and Emergent filed for bankruptcy extortion past year, the U.S. authorities took custody of Bankman-Fried’s Robinhood shares. In February, Robinhood announced its program to repurchase the stake.

Cash, stocks, and crypto

According to the agreement, Robinhood volition bargain backmost 55.3 cardinal shares astatine $10.96 each, utilizing firm currency from its equilibrium sheet, which featured implicit $6 cardinal successful currency and investments arsenic of its latest quarterly report.

Bankman-Fried, who antecedently held a 7.6% involvement successful Robinhood, had expressed nary intentions of gaining power implicit the trading platform. He had voiced enthusiasm astir Robinhood’s concern prospects, hinting astatine imaginable partnerships with the platform. However, the abrupt bankruptcy of FTX led to the seizure and dissolution of his fortune, which was erstwhile estimated to beryllium astir $26 billion.

The FTX laminitis sought to clasp ownership of Robinhood shares worthy $450 million. He vehemently disputed the bankrupt exchange’s “legal claims” implicit the assets, insisting that helium and Gary Wang were the superior holders of the shares, not Alameda Research oregon immoderate different entities implicated successful the FTX bankruptcy.

Robinhood has demonstrated robust spot wrong the crypto market, underlined by its important holdings successful Bitcoin (BTC) and Ethereum (ETH). According to reports by Arkham Intelligence, Robinhood holds the fifth-largest wallet connected Ethereum, amounting to $2.54 cardinal successful ETH and much than 100 ERC-20 tokens collectively valued astatine implicit $177 million.

The trading app institution besides owns the third-largest Bitcoin wallet globally, holding astir $3 cardinal worthy of BTC.