Robinhood Announces Purchase of its Own Shares
In a significant financial move, popular trading platform Robinhood has reached an agreement to buy back $605.7 million worth of its own shares. These shares were previously held by Sam Bankman-Fried, founder of the now-bankrupt cryptocurrency exchange FTX, and his co-founder at FTX, Gary Wang.
The arrangement, mediated by the United States Marshals Service (USMS), comes months after the American government seized 55 million Robinhood shares (HOOD) from SBF and Wang. The assets were part of the portfolio of Emergent Fidelity Technologies, a portfolio company owned by the co-founders of FTX.
The Southern District of New York court gave its blessing to the share buyback agreement on August 28, as evidenced by a filing with the SEC. The market reacted almost instantly to this news, with Robinhood shares rising by approximately 3% during Friday morning’s trading session.