![Robinhood buys back shares Sam Bankman-Fried owned Robinhood buys back shares Sam Bankman-Fried owned](https://i0.wp.com/content.fortune.com/wp-content/uploads/2023/09/GettyImages-1478106511-e1693583322303.jpg?fit=%2C&ssl=1)
Robinhood said in a regulatory filing that the purchase from the U.S. Marshals Service, completed Thursday, involved about 55.3 million shares of the company’s Class A common stock that had been seized by the government. archive Friday. The acquisition price was $10.96 per share, according to the filing.
Emergent Fidelity Technologies Ltd., an entity previously controlled by Bankman-Fried that filed for Chapter 11 bankruptcy in February, acquired more than 7 percent of Robinhood last year.The brokerage firm’s board of directors authorized the firm to “seek to purchase most or all” of the shares, which the firm explain In February.
The shares are caught in a contentious ownership battle between FTX, bankrupt cryptocurrency lender BlockFi Inc. and Bankman-Fried himself. BlockFi has debate Emergent pledged Robinhood stock as collateral for the loan. The Justice Department previously asked the parties to avoid litigation on the issue in bankruptcy court.
“Uncertain whether such buybacks are likely, we believe uncertainty about the outcome of such a large share represents near-term suspense for the stock,” JMP analysts led by Devin Ryan said in a note. .”
The stock, which has risen 37 percent this year, was up 2.8 percent at $11.19 as of 9:53 a.m. in New York.
Bankman-Fried is accused of orchestrating a years-long multibillion-dollar fraud against FTX and Alameda Research, which collapsed last November. He has pleaded not guilty to all charges against him. He has been under house arrest at his parents’ home in Palo Alto, California, since his arrest in the Bahamas last December.his bail It was withdrawn earlier this month.
— With assistance from Brianna Bradham
Svlook