Robinhood pays $605 million for 55 million shares as soon as owned by Sam Bankman-Fried after four-way dispute

Sam Bankman Fried released Manhattan Court SBF

FTX founder Sam Bankman-Fried after his arraignment in New York Metropolis in December. Ed Jones/AFP/Getty Photos

  • Robinhood purchased 55 million of its shares, price $605 million, as soon as owned by Sam Bankman-Fried.

  • The stake was seized by the Justice Division in January as a part of an indictment in opposition to the FTX founder.

  • Robinhood, SBF, FTX and a bankrupt crypto lender had all laid declare to the seized shares.

Robinhood has purchased again greater than $600 million price of its personal shares that have been owned by Sam Bankman-Fried earlier than his arrest.

In a regulatory submitting with the Securities and Trade Fee (SEC) on Friday, the buying and selling platform mentioned it acquired 55 million shares from america Marshal Service (USMS).

The deal is price greater than $605 million. The identical variety of Robinhood shares have been price about $450 million after they have been seized by the Justice Division following the FTX founder’s arrest in January, however the inventory has since risen by greater than a 3rd this 12 months.

Emergent Constancy Applied sciences purchased Bankman-Fried’s Robinhood shares, however went bankrupt shortly after FTX collapsed, bringing down associated corporations.

The Robinhood shares represented the majority of a $700 million pool of Bankman-Fried’s property that have been seized after his arrest. He could be pressured to surrender the property if discovered responsible of expenses together with fraud, cash laundering and violating marketing campaign finance legal guidelines.

The sale resolves a long-standing four-party dispute. Bankrupt crypto lender BlockFi first sued Emergent Constancy in November over the shares, saying they have been promised as safety for a mortgage.

FTX disputed this declare in December, saying the property needs to be seized till they may very well be pretty divided amongst collectors. Then in January, Bankman-Fried argued that he wanted the shares to fund his authorized protection.

Robinhood shares closed up 2% on Friday after the submitting, valuing the corporate at about $10 billion. Inventory buybacks can improve an organization’s inventory value by decreasing the availability of shares excellent.

It’s unclear what is going to occur to the funds now held by the Marshal Service.

Bankman-Fried was despatched to jail final month after a federal decide revoked his bail as a result of he was satisfied he had repeatedly tried to affect witnesses in opposition to him earlier than his trial in October.

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