Robinhood Agrees $600 Million Buyback of Seized Sam Bankman-Fried HOOD Stake From US Marshal Service
On August 30, Robinhood entered into a $605.7 million (HOOD) share buyback agreement with the US Marshal Service (USMS) to reclaim shares formerly held by Same Bankman-Fried (SBF) through Emergent Fidelity Technologies.
At the beginning of this year, the US government took possession of the 55 million HOOD shares owned by Bankman-Fried and Gary Wang, co-founders of FTX, through their holding company, Emergent Fidelity Technologies, after Bankman-Fried's cryptocurrency exchange, FTX, and Emergent filed for bankruptcy protection in 2022.
Last November, just six months before Bankman-Fried's company filed for bankruptcy, he disclosed a 7.6% stake in Robinhood.
However, he clarified that he had no intention of taking control of the retail trading platform. At that time, he expressed excitement about Robinhood's business prospects and potential collaboration opportunities with FTX.
According to a US Securities and Exchange Commission Filing dated August 30, the US District Court for the Southern District of New York approved the share repurchase agreement on August 28.
This agreement covers 55.3 million shares priced at $10.96 each. The approval from the US District Court for the Southern District of New York allows Robinhood to proceed with repurchasing this stake from SBF.
In February, Robinhood had initially announced its intention to repurchase this stake and received authorization from its board to explore purchasing a significant portion, if not all, of the stock.
In response to this latest development, Robinhood's shares experienced a pre-market trading surge of over 3% when news of the buyback was revealed.
Sam Bankman-Fried, or SBF, founded the cryptocurrency exchange FTX Trading after amassing significant wealth.
However, in
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