The post Robinhood Strikes $605.7M Deal With U.S. Marshals To Reclaim Shares Seized From Bankrupt FTX Founders appeared first on Coinpedia Fintech News
According to Reuters’ recent report, Robinhood Markets Inc. (HOOD) has announced a staggering $605.7 million deal with the United States Marshal Service (USMS) to buy back shares previously owned by Sam Bankman-Fried and Gary Wang, the co-founders of the now-bankrupt crypto exchange FTX.
Robinhood Makes A Bullish Move
Robinhood Markets Inc. (HOOD.O) announced this Friday that it has inked a $605.7 million share buyback deal with the United States Marshal Service (USMS) to reclaim stock originally owned by Sam Bankman-Fried’s holding company, Emergent Fidelity Technologies.
The U.S. government took custody of Robinhood’s shares following the bankruptcy filings last year of Bankman-Fried’s FTX exchange and his holding firm, Emergent Fidelity Technologies.
The crypto trading platform revealed that the U.S. District Court for the Southern District of New York has greenlit the sale of 55.3 million shares at a price of $10.96 each. Robinhood initially made its intent known in February, stating that its board had given the go-ahead to proceed with buying back most or all of the seized shares.
A mere half-year before FTX’s bankruptcy filing last November, Bankman-Fried disclosed owning a 7.6% stake in Robinhood. Despite this significant stake, he had no plans to seize control of the retail trading service. Bankman-Fried expressed enthusiasm about Robinhood’s business outlook and hinted at potential collaborations between the two platforms.
Once a prominent figure in the crypto boom, Bankman-Fried had amassed an estimated net worth of $26 billion and had become a notable political contributor in the United States. However, the downfall of FTX wiped his once-staggering wealth.
SBF Is Set To Face Trial In October
Set for trial in October, unless delayed, Sam Bankman-Fried, the founder of the now-insolvent FTX exchange, continues to assert his innocence against the charges he faces. The former CEO of the exchange reportedly plans to enlist expert witnesses in his defense to substantiate his claims of innocence.
Sam Bankman-Fried is reportedly assembling a team of seven expert witnesses to strengthen his defense. These specialists are expected to be compensated at a rate of $1,200 per hour for their testimonies in support of FTX’s erstwhile CEO.
With such rates, the defense’s expenditures for these expert witnesses alone could reach a staggering $8,400 per hour—a significant sum considering that high-profile trials of this nature often extend over a lengthy period.
Per the notice from the defense, Bankman-Fried’s expert witnesses are set to provide insights on a range of topics. These include campaign finance regulations, the financial workings of FTX and its affiliated company Alameda Research, as well as the software architecture of the crypto exchange.
In response to Bankman-Fried’s announcement of his expert witnesses, the government has submitted a motion to disallow their testimonies. Prosecutors contend that the credentials of these experts, along with their submitted disclosures, are fraught with “various shortcomings” that warrant their exclusion from the case.