Online broker Robinhood will buy back 55 million shares of its company worth $605.7 million, which were previously owned by the founder of the collapsed FTX, Sam Bankman-Fried. It is stated in the report for SEC.
The Southern District of New York approved the agreement on August 28.
After the collapse of the crypto exchange, the US Department of Justice seized the securities of its ex-head.
The deal itself was made on May 13, 2022 – an organization affiliated with FTX acquired 56.28 million shares of an online broker for $648.29 million. The assets were held by ED&F Man Capital Markets.
At the end of December 2022, Bankman-Fried, in testimony to the court, said that, together with the co-founder of the trading platform, Gary Wang, he created Emergent Fidelity Technologies to buy a 7.6% stake in the financial platform.
Robinhood first announced plans to return stock in February 2023. Then the board of directors of the company approved the deal and allocated funds for it.
By the start of trading on Friday, the firm’s shares were up 3.9% to trade at $11.31, according to MarketWatch.
Previously, experts from the analytical platform associated Robinhood with the third most bitcoin address — 26,081 BTC (~$3.09 billion).
Recall that in the second quarter, the online broker’s income from operations with digital assets decreased by 18.5% year-on-year to $31 million. The company held $12 billion in cryptocurrencies on behalf of clients.
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