On Wednesday, Robinhood Markets revealed that it would attempt to purchase back shares bought by Sam Bankman-Fried, ex-CEO of the now-bankrupt crypto exchange FTX. The Bankman-Fried’s 7.5% stake in the firm has been a contested factor in FTX’s bankruptcy case and his criminal case.
Vlad Tenev, Robinhood CEO, says that buying the shares would keep shareholders away from distractions. The firm’s boss also announced that the board of directors had already approved the purchase of Bankman-Fried’s shares which are approximately 56 million.
Following the announcement, Robinhood shares have seen an increase of about 6% in the past 24 hours, according to data from TradingView. While the firm is working with the US Justice Department, Robinhood didn’t reveal the exact date when this buy would be complete.
Bankman-Fried, together with Gary Wang, FTX co-founder, bought the Robinhood shares in May 2022 through their firm, Emergent Fidelity. A document presented in court in December showed that the pair took loans from Bankman-Fried’s trading company, Alameda Research, amounting to over $545 million, to buy the shares.
BlockFi and Its Attempts to Secure SBF’s Shares
Last month, the Justice Department announced that it had taken custody of the shares worth $460 million at that time. However, BlockFi, a bankrupt crypto lender, has been trying to get hold of those shares, alleging Bankman-Fried pledged them to the firm as collateral in early November.
The filing came a day after the crypto lender filed for bankruptcy due to liquidity problems caused by its exposure to the fallen exchange, FTX, and Alameda Research. Additionally, BlockFi’s complaint alleges that Emergent Fidelity and a New-York based firm, ED&F Man, had custody of collateral belonging to the crypto lender.
Meanwhile, Sam Bankman-Fried’s attorneys have filed a request to keep hold of those shares, claiming they will help him to shoulder his criminal defense. Further, they argue that FTX’s debtors’ requests to secure the shares should be rejected since they have failed to present proof that they are entitled to the assets.
Robinhood is Optimistic About Crypto Despite Revenue Fall
Elsewhere, last year’s Robinhood’s revenue from crypto on its trading platform fell by 25% as prices dropped significantly. However, the firm says it is encouraged by the recent rally that began at the year’s start. Moreover, Robinhood continues to believe that crypto is not going away any time soon.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
