Retail Trading Giant Robinhood Repurchases $605,000,000 Worth of Shares the Feds Seized From Sam Bankman-Fried
Retail trading platform Robinhood has completed a deal to buy back shares of its own company that were seized by the US government from FTX founder Sam Bankman-Fried. The purchase agreement was made with the United States Marshal Service (USMS) and involved 55,273,469 shares of Robinhood’s Class A common stock. The shares were priced at $10.96 each, based on the average price over the five trading days leading up to August 13. The shares were initially acquired by Bankman-Fried’s holding company, but the US Department of Justice (DOJ) seized them in January due to their alleged involvement in criminal violations. Bankman-Fried is currently facing charges of defrauding investors and mishandling customer funds.
Key Points:
– Robinhood has repurchased $605 million worth of shares that were seized by the US government from Sam Bankman-Fried.
– The purchase agreement was made with the United States Marshal Service.
– The shares were priced at $10.96 each, based on the average price over the five trading days leading up to August 13.
– The shares were initially acquired by Bankman-Fried’s holding company, but the US Department of Justice seized them due to alleged criminal violations.
– Bankman-Fried is currently facing charges of defrauding investors and mishandling customer funds.
Hot Take
Robinhood’s decision to buy back shares seized from Sam Bankman-Fried shows the company’s commitment to maintaining control over its own stock. It also highlights the legal troubles faced by Bankman-Fried, who is currently awaiting trial on charges of fraud and mishandling funds. This move by Robinhood may help to restore investor confidence in the platform, as it demonstrates the company’s willingness to address and resolve issues related to its ownership structure.
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