SBF Permanently Loses Robinhood Stake…

September 1, 2023 11:58 am Comments

Sam Bankman-Fried just got some news I’m sure he won’t like.

The former CEO of the now-defunct FTX exchange hoped that he might be able to reclaim Robinhood shares, valued at $605 million, previously confiscated by the U.S. government following the collapse of FTX. Bankman-Fried reportedly wanted to use the assets to pay for his legal fees.

Those hopes were recently dashed due to an official agreement between Robinhood and the U.S. government to repurchase Sam Bankman-Fried’s stake in the brokerage firm.

Blockchain reporter Colin Wu had more details: “Robinhood spent $605.7 million to repurchase shares of SBF’s shell company Emergent Fidelity Technologies from the USMS. The company is SBF, which borrowed $546 million from Alameda to buy a 7.6% stake in Robinhood.”

Axios journalist Lucinda Shen shared the original Reuters article and explained: “Several parties have tried to get access to the stake, including SBF (who wanted it to fund his legal fees).”

According to Crypto Briefing:

The U.S. District Court for the Southern District of New York has ratified the sale of the 55.3 million shares, each priced at $10.96. It was only in February that Robinhood initially divulged its objective to repurchase this substantial stake, emphasizing that the board endorsed the move to retrieve the majority, if not all, of the shares.

Arkham, an on-chain research page, claimed that Robinhood represents one of the largest crypto whales:

“Our identification of Robinhood as the owner of the third-largest Bitcoin wallet was widely covered. But most coverage missed that we’ve also identified them as the owner of the 5th largest ETH wallet, holding $2.54B of ETH.”

Financial outlet Investor Turf issued this warning: “We strongly discourage the use of Robinhood under any circumstances. In fact, if you currently have an account with them, we highly recommend closing your account and seeking an alternative brokerage.”

Benzinga added:

Robinhood disclosed the share repurchase agreement with the U.S. Marshal Service (USMS) on Friday, pushing its shares up by nearly 3% in Friday’s early session. The deal involves the buyback of 55.3 million shares at $10.96 per and follows Robinhood’s initial disclosure of its intent to repurchase the shares back in February.

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