Robinhood completes buyback of $606 million in seized shares from FTX founder Sam Bankman-Fried
Robinhood has successfully repurchased $606 million worth of shares that were previously seized from FTX founder Sam Bankman-Fried, according to an SEC filing. The shares were initially valued at $450 million when the U.S. Justice Department took custody of them in January. Bankman-Fried, who was arrested and charged with crimes related to the collapse of FTX, has pleaded not guilty and awaits trial in October.
Key points:
- Robinhood used corporate cash to repurchase the shares
- The repurchase was approved by District Judge Lewis Kaplan
- The U.S. Marshalls Service was authorized to pursue a private sale of the shares
- Robinhood’s share price increased by 3% following the buyback
- Bankman-Fried and FTX co-founder Gary Wang purchased the Robinhood shares through a holding company
Robinhood’s Chief Financial Officer, Jason Warnick, expressed satisfaction with completing the purchase. The repurchase removes a distraction for shareholders, according to Robinhood CEO Vlad Tenev, who previously announced the board of directors’ approval of the buyback in February. Bankman-Fried and Wang had obtained a loan from FTX’s sister company, Alameda, to make the purchase, which came under scrutiny due to allegations of misconduct.
Hot Take: Robinhood’s successful buyback of seized shares from FTX founder Sam Bankman-Fried is a significant move for the company. By removing the shares from the disgraced crypto mogul, Robinhood can focus on its future growth and regain the trust of its shareholders. The repurchase also highlights the ongoing legal battles surrounding Bankman-Fried and FTX, which continue to cast a shadow over the crypto industry.
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