Robinhood Buys Back Shares from FTX Founders
Robinhood Markets Inc. has struck a deal with the United States Marshal Service (USMS) to repurchase shares previously owned by Sam Bankman-Fried and Gary Wang, the co-founders of bankrupt exchange FTX. The deal is valued at $605.7 million, with Robinhood reclaiming 55.3 million shares at $10.96 each.
Bankman-Fried to Face Trial in October
Sam Bankman-Fried, the founder of FTX, is set to go to trial in October. He plans to defend himself against the charges and has assembled a team of seven expert witnesses. These experts will be compensated at a rate of $1,200 per hour and are expected to testify on topics such as campaign finance regulations, the financial workings of FTX and its affiliated company Alameda Research, and the software architecture of the crypto exchange.
Prosecutors Seek to Exclude Expert Witnesses
The government has filed a motion to disallow the testimonies of Bankman-Fried’s expert witnesses, citing “various shortcomings” in their credentials and disclosures. The defense’s expenditures for these witnesses could reach $8,400 per hour. The trial is expected to be high-profile and may extend over a lengthy period.
Hot Take
Robinhood’s buyback deal with the USMS demonstrates its efforts to regain control and stability after the bankruptcy of FTX. Meanwhile, Bankman-Fried’s defense strategy of enlisting expert witnesses indicates his determination to prove his innocence. The outcome of the trial will have significant implications for both individuals and the crypto industry as a whole.
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