Robinhood board approves strategy to obtain again Sam Bankman-Fried’s $578 million stake

Robinhood board approves strategy to obtain again Sam Bankman-Fried’s 8 million stake


Rafael Henrique | Sopa Illustrations or photos | Lightrocket | Getty Visuals

The board of directors of Robinhood has authorized a system to get up to 55 million shares purchased by Sam Bankman-Fried final 12 months. The ex-CEO of the now bankrupt crypto exchange FTX at first obtained his stake in May 2022 by way of Emergent Fidelity Systems.

The retail brokerage is operating with the Division of Justice, which seized the shares in January, to facilitate the go.

Shares of Robinhood are up additional than 3% in after-hrs trading subsequent the launch of its quarterly earnings report that confirmed web income increasing 5% from last quarter to $380 million.

“Our board approved us to acquire the shares of Robinhood that had been initially acquired by Emergent Fidelity Systems, that FTX subsidiary,” Robinhood Chief Monetary Officer Jason Warnick advised CNBC.

“And which is been a major concern on shareholders’ minds, and a technical overhang, what is likely to take place with these shares,” Warnick mentioned.

“The board has authorized us to go and repurchase these and so we are in conversations with the DOJ on that. Challenging to tell accurately what the timeline is heading to be,” Warnick additional.

“Since there is minimal precedent for this variety of situation, we can’t forecast when, or if, the share acquire will get spot. We will give updates as appropriate,” the business said in its earnings report launch.

In accordance to a Jan. 20 filing by the DOJ, Bankman-Fried held 55,273,469 Robinhood shares, around 7% of the firm’s fantastic shares. As of Wednesday’s near, that stake is valued at around $578 million.

Emergent Fidelity was controlled by both Bankman-Fried and fellow FTX co-founder Gary Wang. Both of those Wang and Bankman-Fried took out loans straight from Alameda Research to fund the acquisition, in accordance to court filings. The shares are also at the heart of a contentious courtroom struggle involving FTX, Bankman-Fried, crypto financial institution BlockFi and a established of worldwide entities.

CNBC’s Kate Rooney contributed to this report.



Supply

This ‘quiet luxury’ Italian brand is shaking off tariff woes as sales jump
World

This ‘quiet luxury’ Italian brand is shaking off tariff woes as sales jump

Key Points Brunello Cucinelli posted an estimate-beating 10.7% rise in first half sales as the super-rich shrug off tariff concerns. The retailer also pointed to a solid start to July and confirmed its outlook for around 10% sales growth in 2025 and 2026. Analysts, however, expressed doubt over broad-based growth for the beleaguered sector. Soaring […]

Read More
Jamie Dimon has a blunt message for Europe: ‘You’re losing’
World

Jamie Dimon has a blunt message for Europe: ‘You’re losing’

Key Points Jamie Dimon told an event in Ireland on Thursday that Europe was “losing” on competitiveness and lacked the kind of global, successful corporations common in the U.S. The JPMorgan Chase boss also told an event in Ireland that there was “complacency in the markets” around U.S. tariffs and rates. Dimon said he saw […]

Read More
Norway’s Tesla obsession defies Europe’s Musk backlash
World

Norway’s Tesla obsession defies Europe’s Musk backlash

An electric car at a charging station in the Norwegian capital of Oslo on Sept. 25, 2024. Jonathan Nackstrand | Afp | Getty Images OSLO, Norway — Tesla continues to find solace in Norway, defying a sustained European slump amid a backlash over CEO Elon Musk’s incendiary political rhetoric. The U.S. electric vehicle maker recorded […]

Read More