Robinhood Acquires Sam Bankman-Fried’s Stake from U.S. Government in $606 Million Deal

Robinhood, the popular trading platform for cryptocurrencies and stocks, has just made a significant move by acquiring more than 55 million shares that were previously owned by none other than Sam Bankman-Fried, the former CEO of FTX.

In a recent blog post dated August 31, Robinhood announced that it had successfully completed the purchase of precisely 55,273,469 shares, at a total cost of approximately $606 million. This acquisition followed a filing made with the United States Securities and Exchange Commission (SEC). These shares were originally under the ownership of Sam Bankman-Fried and Gary Wang, co-founder of FTX, via their company Emergent Fidelity Technologies. Notably, these shares were seized by the U.S. Department of Justice back in January.

The news of this purchase did not come as a surprise, as it had been previously mentioned in Robinhood’s Q4 2022 report, where the company’s board of directors had given their approval. Moreover, an SEC filing on August 30 confirmed that the U.S. District Court for the Southern District of New York had also given its approval, allowing Robinhood to acquire these shares without any claims, interests, liens, or encumbrances.

Robinhood’s Chief Financial Officer, Jason Warnick, expressed the company’s satisfaction with this acquisition, stating, “We are happy to have completed the purchase of these shares and look forward to executing on our growth plans on behalf of our customers and shareholders.” This move signals Robinhood’s commitment to further expansion and development for the benefit of its user base and investors alike.

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