Robinhood Enters $605.7 Million Share Buyback Agreement with US Marshal Service
Robinhood has entered into a $605.7 million share buyback agreement with the US Marshal Service (USMS) to reclaim shares formerly held by Same Bankman-Fried (SBF) through Emergent Fidelity Technologies. The US government had taken possession of the 55 million HOOD shares owned by Bankman-Fried and Gary Wang, co-founders of FTX, after their cryptocurrency exchange, FTX, and Emergent filed for bankruptcy protection. The share repurchase agreement covers 55.3 million shares priced at $10.96 each.
SBF Faces Legal Battles Amid Bankruptcy Fallout and Robinhood’s Partnership Shake-Up
Sam Bankman-Fried, or SBF, founder of FTX Trading, faces legal troubles including fraud and conspiracy charges connected to the downfall of his bankrupt exchange. He has entered a not-guilty plea to a revised indictment that includes seven charges related to FTX’s collapse, encompassing fraud and money laundering. SBF’s legal team is challenging his detention, arguing that it obstructs trial preparation. Meanwhile, Robinhood Markets terminated its partnership with Jump Trading, a Chicago-based player in traditional finance.
Key Points:
- Robinhood enters $605.7 million share buyback agreement with US Marshal Service to reclaim shares
- Shares were formerly held by Same Bankman-Fried through Emergent Fidelity Technologies
- SBF faces legal battles and has entered a not-guilty plea to charges related to FTX’s collapse
- His legal team challenges his detention, arguing it obstructs trial preparation
- Robinhood terminates partnership with Jump Trading
Hot Take
This development shows that Robinhood is taking steps to regain control of shares held by Bankman-Fried, signaling a potential shift in ownership and strategy. Meanwhile, SBF’s legal battles continue to unfold, and his detention raises questions about the impact on his trial preparation. The termination of Robinhood’s partnership with Jump Trading also adds another layer of change to the cryptocurrency landscape. These events highlight the ongoing complexities and challenges faced by both Robinhood and SBF in the evolving crypto industry.
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