Robinhood to Buy Back $605 Million Stake from Sam Bankman-Fried
Robinhood exchange has completed the repurchase of shares from Emergent Fidelity Technologies. Emergent was a holding company with Sam Bankman-Fried at its helm owning 90% shares. The firm purchased Robinhood shares in May 2022.
However, the financial company based out of Barbuda and Antigua filed for bankruptcy in February to initiate joint insolvency proceedings with FTX exchange. In February, Robinhood shares under ownership of Emergent became a legal battle between Bankman Fried, FTX creditor Yonathan Ben Shimon, and BlockFi.
In February, the stock reserve in contention was valued at $590 million. Robinhood officials have filed an 8-K form with the Securities and Exchange Commission to confirm the repurchase. The digital trading platform aired its aim to rebuy the 55 million shares at the start of the ongoing year. This repurchase was approved by New York court.
However, Robinhood repurchases the shares from United States Marshal Services that was holding the shares on behalf of United States government. The sale was finalized for $605 million with $10.96 per share.
The Robinhood shares have many claimants for legal ownership including Sam Bankman-Fried. He initiated legal action to retain the ownership of Robinhood shares but it was forfeited in January. BlockFi is another major creditor that filed for a legal claim over Robinhood purchased by Emergent.
The firm declared a claim over the shares as collateral on account of Alameda Research defaulting on its debt obligations. The legal team of BlockFi maintained that the firm has a legal claim over the collateral in the form of liquidated assets or proceeds from its sales should be directed to the BlockFi.
Jason Warnick, the chief financial officer of Robinhood has confirmed the repurchase of the shares. He further stated that the firm intends to keep working towards its goals to pursue growth on behalf of its shareholders and clientele. Sam Bankman-fried is still facing legal scrutiny over fraud charges and misappropriations of funds over customer assets in the court.
Robinhood Now Holds 34 Trillion Shiba Inu Tokens
Robinhood has been identified as the third biggest Bitcoin wallet reserve in the world. At the same time, the commission-free trading platform is also one of the biggest Ethereum wallets. Another report has suggested that this trading forum is also a Shiba Inu whale.
The report from Arkham Intelligence has revealed that this platform has added another 14 trillion Shiba Inu token to its commercial crypto reserve. The statistics from Arkham Intelligence also reveal that Robinhood holds more than $3 billion in Bitcoin and $2.5 billion in ETH.
It is important to note that the commercial wallet of the trading forum added around 118,300 BTC during the last 3 months as per BitInfoCharts reports.
With this latest addition, the total crypto reserves now consist of 34 trillion in Shiba Inu tokens. The second largest meme coin holdings of the platform are now valued at $279.85 million. The latest addition of 70.4% in the total Shiba Inu reserves of the meme coin is done at the same time when Shibarium, the second-layer scalability solution is set to go live.
Robinhood added its latest installment of 14 trillion Shiba Inu tokens during the last 20 days. The digital trading platform has now introduced support for in-app swaps for ERC-20 tokens. The list of ERC-20 token cryptocurrencies consists of support for more than 200 virtual coins.
