A financial and crypto trading platform, Robinhood is buying back $605.7 million worth of its own shares from Emergent Fidelity Technologies, tied to Sam Bankman-Fried, following the U.S. government’s takeover due to his company’s bankruptcy last year.
Jason Warnick, Chief Financial Officer of Robinhood Markets, Inc., said, “We are happy to have completed the purchase of these shares and look forward to executing on our growth plans on behalf of our customers and shareholders.”
This move resulted in Robinhood’s stock price increasing by over 3%. The purchase of 55.3 million shares, priced at $10.96 each, was approved by a U.S. District Court in New York.
Sam Bankman-Fried, who previously owned 7.6% of Robinhood, stated he had no intention of taking control of the company. His wealth, primarily tied to cryptocurrencies like Bitcoin, was once valued at $26 billion but was wiped out following the bankruptcy of his cryptocurrency exchange, FTX.
Bankman-Fried is facing legal issues, including fraud and conspiracy charges related to FTX’s collapse. He is currently in jail until his trial in October, as the judge believes he tampered with witnesses while out on bail.
The repurchase of Robinhood shares and the associated stock price increase reflect a strategic move for the company, while Sam Bankman-Fried’s legal troubles underscore the challenges in the crypto industry.
Also Read: Sam Bankman-Fried Attempts to Retain $450 Million in Robinhood Shares
