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News

Robinhood Board Approves The Purchase Of SBF $578 Million Stake

February 8, 2023 - Around 2 mins mins to read

Key Points:

  • The former FTX CEO Sam Bankman-Fried and FTX co-founder Gary Wang purchased a $578 million share in Robinhood last year. Robinhood’s board of directors has now approved a plan to buy back that investment.
  • On January 9, the 55 million shares, or around 7% of the corporation, were confiscated by the US Department of Justice (DOJ).
  • Robinhood has been collaborating with the DOJ on a plan to effectuate the buyback.
The former FTX CEO Sam Bankman-Fried and FTX co-founder Gary Wang purchased a $578 million share in Robinhood last year. Robinhood’s board of directors has now approved a plan to buy back that investment.
Robinhood Board Approves The Purchase Of SBF 578 Million Stake

In its fourth quarter report, which was released on February 8, RB stated that it had board authority to purchase back the stake.

Jason Warnick, chief financial officer, stated that:

“Our Board authorized us to explore acquiring most or all of our shares that Emergent Fidelity Technologies purchased in May 2022.”

“The proposed share purchase underscores the confidence the Board of Directors and management team have in our business.”

By taking out loans directly from FTX’s sister company Alameda Research, the FTX co-founders purchased 55 million shares of Robinhood stock in May through Emergent Fidelity Technologies, which are currently worth $578 million at current pricing.

On January 9, the 55 million shares, or around 7% of the corporation, were confiscated by the US Department of Justice (DOJ).

Bankman-Fried and Wang used the shares as collateral to obtain a loan from bitcoin lending site BlockFi, which filed a lawsuit in court to repossess the shares.

Robinhood has been collaborating with the DOJ on a plan to effectuate the buyback

Robinhood Board Approves The Purchase Of SBF 578 Million Stake 1

The shares in question have been involved in numerous legal disputes.

Following the collapse of the exchange in November, FTX filed a request with the court on December 23 to prevent BlockFi from obtaining the Robinhood shares.

Even though FTX and other FTX-affiliated firms filed for Chapter 11 bankruptcy, Emergent Fidelity did file for bankruptcy protection on February 3.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Annie

Coincu News

DOJ

Gary Wang

Robinhood

Sam Bankman-Fried

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Author

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.
News

Robinhood Board Approves The Purchase Of SBF $578 Million Stake

Key Points:

  • The former FTX CEO Sam Bankman-Fried and FTX co-founder Gary Wang purchased a $578 million share in Robinhood last year. Robinhood’s board of directors has now approved a plan to buy back that investment.
  • On January 9, the 55 million shares, or around 7% of the corporation, were confiscated by the US Department of Justice (DOJ).
  • Robinhood has been collaborating with the DOJ on a plan to effectuate the buyback.
The former FTX CEO Sam Bankman-Fried and FTX co-founder Gary Wang purchased a $578 million share in Robinhood last year. Robinhood’s board of directors has now approved a plan to buy back that investment.
Robinhood Board Approves The Purchase Of SBF 578 Million Stake

In its fourth quarter report, which was released on February 8, RB stated that it had board authority to purchase back the stake.

Jason Warnick, chief financial officer, stated that:

“Our Board authorized us to explore acquiring most or all of our shares that Emergent Fidelity Technologies purchased in May 2022.”

“The proposed share purchase underscores the confidence the Board of Directors and management team have in our business.”

By taking out loans directly from FTX’s sister company Alameda Research, the FTX co-founders purchased 55 million shares of Robinhood stock in May through Emergent Fidelity Technologies, which are currently worth $578 million at current pricing.

On January 9, the 55 million shares, or around 7% of the corporation, were confiscated by the US Department of Justice (DOJ).

Bankman-Fried and Wang used the shares as collateral to obtain a loan from bitcoin lending site BlockFi, which filed a lawsuit in court to repossess the shares.

Robinhood has been collaborating with the DOJ on a plan to effectuate the buyback

Robinhood Board Approves The Purchase Of SBF 578 Million Stake 1

The shares in question have been involved in numerous legal disputes.

Following the collapse of the exchange in November, FTX filed a request with the court on December 23 to prevent BlockFi from obtaining the Robinhood shares.

Even though FTX and other FTX-affiliated firms filed for Chapter 11 bankruptcy, Emergent Fidelity did file for bankruptcy protection on February 3.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Annie

Coincu News