After FTX founder Sam Bankman-Fried was arraigned in New York City in December. Ed Jones/AFP/Getty Images
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Robinhood bought 55 million shares worth $605 million that were once owned by Sam Bankman-Fried.
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The stake was seized by the Justice Department in January as part of charges against the FTX founder.
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Robinhood, SBF, FTX and a bankrupt crypto lender claimed the seized shares.
Robinhood has bought back over $600 million worth of its own shares that were owned by Sam Bankman-Fried before his arrest.
in a regulator Admission The trading platform on Friday filed with the Securities and Exchange Commission (SEC) that it has acquired 55 million shares from the United States Marshals Service (USMS).
The deal is worth over $605 million. same number of Robinhood Shares These were worth about $450 million when the DOJ seized them following the arrest of the FTX founder in January, but the stock has gained more than a third this year.
Emergent Fidelity Technologies bought the Robinhood stake from Bankman-Fried, but went bankrupt shortly after the collapse of FTX, which resulted in the closure of companies associated with it.
Robinhood shares made up the majority $700 million pool After Bankmann-Fried’s arrest, his property was confiscated. He would be forced to give up the property if convicted of charges including fraud, money laundering and violating campaign finance laws.
The sale settled a long-running four-party dispute. Bankrupted crypto lender BlockFi First sued emergent fidelity for the shares in November, claiming that they had been promised as collateral for the loan.
ftx disputed The claim was made in December, arguing that the properties should be frozen until they can be divided fairly among creditors. Then in January, Bankman-Fried argued that it needed the stock for its legal defense.
Robinhood shares closed 2% higher on Friday after the filing was released, valuing the company at about $10 billion. Stock repurchases can increase a company’s share price by reducing the supply of shares in open circulation.
It is unclear what will happen to the funds held by the Marshals Service.
Bankman-Fried sent to jail Last month, a federal judge revoked his bail after he was convinced that he had repeatedly tried to influence witnesses against him ahead of his trial in October.
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