According to recent reports, the United States Marshal Service (USMS) and the American trading platform Robinhood have finally reached an agreement under which the platform is going to buy back shares of Sam Bankman-Fried’s Emergent Fidelity Technologies for a total of $605.7 million.
Robinhood Repurchases 55M Shares
According to a blog post published on August 31, Robinhood is reported to buy 55,273,469 shares for almost $606 million after submitting a report to the US Securities and Exchange Commission.
Purchased has been Approved by the Board
In the organization’s Q4 2022 report, Robinhood’s board of directors reported that the purchase had been approved. Jason Warnick, the chief financial officer of Robinhood, stated: “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.”
Additionally, a filing with the SEC on August 30 stated that the purchase had been authorized “free and clear of any claims, interests, liens and encumbrances” by the U.S. District Court for the Southern District of New York.
Judge Lewis Kaplan Authorized the Agreement
Interestingly, US District Judge Lewis Kaplan authorized the agreement. As stated by Kaplan, who is in charge of Bankman-Fried’s criminal prosecution, Robinhood’s intended share purchase arrangement is “appropriate” and “in the best interest of the relevant.” Following the acquisition, Robinhood shares increased by more than 3% in premarket trading.
Robinhood Shares Were Used as Collateral
Notably, after Bankman-Fried’s FTX and Emergent filed for bankruptcy protection last year, the Department of Justice confiscated the shares of Robinhood that were previously held by FTX co-founder Gary Wang and Bankman-Fried through Emergent Fidelity Technologies. The platform announced its plan to repurchase the stock for the first time in February of this year, and in the same month, the board of directors approved the plan.
Meanwhile, earlier this month, Judge Kaplan ordered Bankman-Fried to be arrested in anticipation of his October trial after concluding that the former millionaire had probably manipulated witnesses while being held in his parents’ Palo Alto, California, home on a $250 million bond.