Robinhood Markets, an online stock and crypto brokerage, has entered into a stock repurchase agreement with the United States Marshals Service (USMS) to buy back shares acquired by crypto entrepreneur Sam Bankman-Fried’s Emergent Fidelity Technologies.
- The stock was seized after FTX and Emergent filed for bankruptcy in 2022.
- Robinhood will pay $605.7 million for 55.3 million shares.
- The deal was approved by U.S. District Judge Lewis Kaplan.
- FTX collapsed due to liquidity issues, and Bankman-Fried has been accused of misappropriating funds.
- SBF was arrested and jailed for alleged witness tampering.
Robinhood’s planned buyback of shares from the USMS highlights the aftermath of FTX’s collapse and the legal troubles faced by Sam Bankman-Fried. This move shows Robinhood’s commitment to resolving the situation and protecting the interests of relevant stakeholders. However, it also raises questions about due diligence and risk management in the crypto space, as the collapse of a major exchange can have far-reaching consequences.
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