Robinhood has confirmed its agreement to repurchase Sam Bankman-Fried’s stake in Emergent Fidelity Technologies from the United States Marshal Service (USMS) for a sum of $605.7 million. The U.S. government took custody of Robinhood shares following the bankruptcy filings of FTX and Emergent last year. The sale, which involves 55.3 million shares priced at $10.96 each, received approval from the U.S. District Court for the Southern District of New York, media reports said.
This move was initially disclosed by Robinhood in February, with the company’s board granting authorization to pursue the acquisition of a substantial portion or potentially the entirety of the stock. Notably, Bankman-Fried, who had revealed a 7.6% stake in Robinhood just six months before his company’s bankruptcy filing, emphasized that he had no intention of assuming control over the retail trading platform at the time. Instead, he expressed excitement about Robinhood’s business prospects and possible collaboration with FTX.
Bankman-Fried’s wealth had surged to an estimated $26 billion, driven by the surging value of digital assets like Bitcoin. He had also become a prominent political contributor in the United States. However, FTX’s collapse led to the depletion of his fortune.
Facing fraud and conspiracy charges related to the November 2022 collapse of his now-bankrupt cryptocurrency exchange, Bankman-Fried has maintained his plea of not guilty. Recently, a U.S. judge in Manhattan ordered his detention prior to his October trial, citing concerns that the former billionaire may have tampered with witnesses while under house arrest at his parents’ residence in Palo Alto, California, while on $250 million bail.
