Robinhood to Buy back 55.3M Shares from Sam Bankman-Fried
Robinhood gets approval to buy back $605.7M shares from Sam Bankman-Fried after his companies faced issues.
A court in New York said Robinhood can buy back shares taken from Sam Bankman-Fried by the US government. Robinhood will pay $605.7 million for these shares.
Sam Bankman-Fried had shares in Robinhood. But after his companies FTX and Emergent had financial problems, the U.S. government took these shares. Later, Robinhood said they wanted to buy them back.
Robinhood will buy 55.3 million shares at $10.96 each. They will use their own money for this. Before these problems, Bankman-Fried had a big share in Robinhood and liked the company. He even thought about working with them more. But when FTX had financial issues, his wealth, once valued at $26 billion, was affected.
He tried to keep his Robinhood shares worth $450 million. He said he and another person, Gary Wang, were the main owners of these shares, not other companies linked to the FTX problems.
Robinhood is strong in the crypto market. They have a lot of Bitcoin (BTC) and Ethereum (ETH). Reports say Robinhood has one of the biggest Ethereum wallets, with $2.54 billion in ETH and other tokens. They also have one of the biggest Bitcoin wallets, with about $3 billion in BTC.
