Robinhood buys back shares US seized from Sam Bankman-Fried
The purchase price was $10.96 a share, according to the filing
New York: Robinhood Markets bought back $605.7 million of company stock that had been controlled by Sam Bankman-Fried and was seized by the US government.
The purchase from the US Marshal Service, which was completed on Thursday, involved about 55.3 million shares of the company’s Class A common stock, Robinhood said in a regulatory filing Friday. The purchase price was $10.96 a share, according to the filing.
Emergent Fidelity Technologies, an entity that was previously controlled by Bankman-Fried and filed for bankruptcy protection in February, acquired a stake of more than 7 per cent in Robinhood last year. The brokerage’s board authorized the firm to “pursue purchasing most or all” of those shares, the company said in February.
Bankman-Fried is accused of orchestrating a multibillion-dollar, years-long fraud at FTX and Alameda Research, both of which collapsed last November. He has pleaded not guilty to all the charges against him. He had been under house arrest at his parents’ home in Palo Alto, California, since last December, after he was arrested in the Bahamas. His bail was revoked earlier this month.