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Robinhood has bought 55 million of its $605 million worth of shares once owned by Sam Bankman Fried.
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The Department of Justice seized the stake in January as part of the charges against the founder of FTX.
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Robinhood, SBF, FTX and the bankrupt cryptocurrency lender have all filed claims for the forfeited shares.
Robinhood has bought back more than $600 million worth of its own stock that belonged to Sam Bankman Fried prior to his arrest.
in my organization filing The platform trading with the Securities and Exchange Commission (SEC) said Friday that it has acquired 55 million shares of the United States Marshal Service (USMS).
The value of the deal is more than 605 million dollars. the same number of Robinhood stocks It was worth about $450 million when it was confiscated by the Justice Department after the FTX founder’s arrest in January, but the stock has since risen by more than a third this year.
Emergent Fidelity Technologies bought Robinhood’s stake from Bankman-Fried, but it went bankrupt shortly after the collapse of FTX, leading to the collapse of the companies intertwined with it.
Robinhood shares accounted for the majority of A Raised $700 million Of Bankman Fried’s assets that were seized after his arrest. He will have to give up the assets if he is found guilty of charges that include fraud, money laundering and campaign finance violations.
Sale settles a long-running dispute between four parties. Bankrupt cryptocurrency lender BlockFi first Fidelity lawsuit arising for the shares in November, claiming they were promised as collateral for a loan.
FTX disputed This claim in December, arguing that the assets must be seized so that they can be divided fairly among creditors. Then in January, Bankman Fried said it needed the shares to fund its legal defence.
Robinhood shares closed up 2% on Friday after the filing was released, valuing the company at nearly $10 billion. Stock buybacks can raise a company’s share price by reducing the supply of shares in open trading.
It is not clear what will happen to the money now held by the Marshals Service.
Bankman Fried was sent to prison last month after a federal judge, convinced he had repeatedly tried to sway witnesses against him, canceled his bail ahead of his trial in October.
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