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Robinhood bought the 55 million shares that Sam Bankman-Fried once owned for $605 million.
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The stake was seized by the Justice Department in January in an indictment against FTX’s founder.
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Robinhood, SBF, FTX, and a bankrupt crypto lender all laid claim to the held shares.
Robinhood bought more than $600 million worth of shares owned by Sam Bankman-Fried prior to its takeover.
In the controller Filing According to the Securities and Exchange Commission (SEC) on Friday, the trading platform received 55 million shares from the United States Marshals Service (USMS).
The deal is worth more than 605 million dollars. Same number Robinhood shares It was worth about $450 million when FTX was seized by the DOJ in January following the arrest of its founder, but the stock has risen more than a third this year.
Emergent Fidelity Technologies bought Robinhood’s stake from Bankman-Fried, but FTX collapsed and went bankrupt soon after, bringing down the companies involved with it.
Robinhood’s shares held the majority of a 700 million dollar pool Bankman-Fried’s assets seized after seizure. If found guilty of fraud, money laundering and violating campaign finance laws, he will be forced to forfeit his assets.
The sale resolves a long-standing dispute between the four parties. Bankrupt crypto lender BlockFi debuts Sudden loyalty accused for shares in November, stating that they were pledged as collateral.
FTX argued. Arguing that this claim should be held until December, when the assets can be properly divided among the creditors. Then in January, Bankman-Fried argued that he needed the stock to support his legal defense.
Shares of Robinhood rose 2 percent Friday after the filing was released, valuing the company at about $10 billion. Stock buybacks can raise a company’s stock price by lowering the supply of shares in open circulation.
It is unclear what will happen to the money now held by the Marshals Service.
Bankman-Fried was sent to prison Last month, a federal judge revoked his bail after believing he repeatedly tried to influence witnesses before a trial in October.
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