Retail giant Robinhood has bought back more than $605 million in its own company’s stock that the US government seized from disgraced FTX founder Sam Bankman-Fried.
On Wednesday, Robinhood entered into a stock purchase agreement with the United States Marshal Service (USMS) to acquire 55,273,469 shares of the company’s Class A common stock, at a price of $10.96 per share.
The deal was closed on Thursday.
The share price was determined “based on the arithmetic average of the volume-weighted average price per share of the Company’s Class A common stock for each of the five consecutive trading days prior to August 13,” according to a recent publication. submit with the US Securities and Exchange Commission (SEC).
The shares were initially acquired by Emergent Fidelity Technologies, Bankman-Fried’s holding company, but the US Department of Justice (DOJ) seized the shares in January.
The DOJ said at the time that the seized assets were involved in money laundering and wire fraud criminal offenses and were not property of FTX’s bankruptcy estate. The crypto exchange filed for bankruptcy in November.
Bankman-Fried is currently awaiting trial and is accused of defrauding investors and mishandling billions of dollars in client funds in connection with last year’s FTX collapse. If convicted, he risks years behind bars.
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