On Friday, Robinhood struck a deal to buy back shares lost in the implosion of Sam Bankman-Fried’s cryptocurrency exchange FTX. The $605.7 million agreement with the US Marshals Service allows Robinhood to recover its investment in FTX and Bankman-Fried’s holding company Emergent Fidelity Technologies.

The Marshals Service took custody of 55.3 million Robinhood shares after FTX declared bankruptcy last November. On Friday, Robinhood announced that it will repurchase the shares for $10.96 each. The US District Court for the Southern District of New York has given its approval.

Robinhood Buys Back Shares, Stock Price Sees an Immediate Boost

The repurchase covers all HOOD shares bought in May 2022 by Emergent Fidelity Technologies, which represents over 7% of Robinhood’s outstanding shares. Emergent Fidelity Technologies was founded by FTX’s founder, Sam-Bankman Fried, along with executive Gary Wang. However, the company declared bankruptcy in February of this year.

Robinhood’s stock climbed over 3% on the news. Buying back the shares will allow the online brokerage to regain the equity it had invested in FTX and Emergent.

Just months before FTX’s collapse, Bankman-Fried had revealed a 7.6% stake in Robinhood through Emergent. At the time, he claimed no intention of taking control of Robinhood and spoke of potential partnerships between their companies.

But Bankman-Fried’s net worth soon evapo

Go to Source to See Full Article
Author: Josh Adams

Did you like this?
Tip BTC Newswire with Cryptocurrency

• Bitcoin
• Bitcoin Cash
• Ethereum
• Litecoin
• Monero
• ZCash

Donate Bitcoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Bitcoin Cash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Ethereum to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Ether:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Litecoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Monero to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Monero:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate ZCash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some ZCash:

Copy ZCash Address

[X] Click Here to Hide Donation Details