Robinhood Markets CEO Vlad Tenev explained Tuesday he’s unclear what Sam Bankman-Fried, the disgraced former CEO of FTX, is heading to do with his 7.6% stake in his investing application.
“I’m not surprised that it is really a person of the more worthwhile assets they have on on their balance sheet mainly because it is general public company’s stock,” Tenev explained on CNBC’s “Squawk Box.” “We don’t have a great deal of information that you men will not have. We are just viewing this unfold and … it truly is likely to be locked up in individual bankruptcy proceedings, most probably for some time. And so we are just sort of looking at how that performs out.”
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In Might, Bankman-Fried took a 7.6% stake in Robinhood worth $648 million in the belief that the shares “signify an eye-catching financial investment.” As FTX spiraled into personal bankruptcy, Bankman-Fried’s Robinhood stake became the most significant liquid line product on his balance sheet that he could most likely provide.
Shares of Robinhood has fallen 45% this 12 months to below $10 apiece amid shrinking income and declining users.
Tenev said he sees a pattern of overseas businesses making U.S. subsidiaries, which haven’t been scrutinized to the identical diploma. FTX grew to become a Bahamas entity in July 2021.
“I feel which is something that regulators ought to choose a seem at and make absolutely sure that the scrutiny is the identical if not better, if you’re offshore and running a business enterprise that has subsidiaries that provide American customers,” Tenev said.
The Robinhood CEO reported he is still bullish on cryptocurrencies inspite of the FTX collapse.
“We however see possibilities with crypto. I feel in particular customers have been looking for regulated safer alternatives, specially shoppers in the U.S.,” Tenev said.
The buying and selling application introduced Tuesday it is really rolling out retirement accounts to its end users, with a 1% contribution match.
