Robinhood Board approves Sam Bankman-Fried’s stake from the US DOJ

Robinhood’s board approved a plan for Sam Bankman-Fried, former CEO of FTX, to buy back his 55 million shares. This is a 7.6% stake in Robinhood. The brokerage firm is currently in discussions with the U.S. Department of Justice to purchase the seized shares that SBF purchased in May 2022 through his company, Emergent Fidelity Technology.
Robinhood to Buy Sam Bankman-Fried’s 7.6% Share
Robinhood reported in its Q4 financial report that it had received approval from its board to purchase 55 million Robinhood shares. These shares were purchased by Sam Bankman-Fried through Emergent Fidelity Technologies, May 2022.


On January 9, the U.S. DOJ took contested shares from SBF’s Emergent Fidelity Technologies, who used loans from FTX’s sister company Alameda Research for a 7.6% stake at Robinhood. Several parties, including FTX, BlockFi crypto lender, and Sam Bankman Fried, have contested the claims.
Jason Warnick, Chief Financial officer of Robinhood Markets, stated that the proposed purchase of shares demonstrates the trust the Board of Directors has in the business.
Vlad Tenev, CEO, and Co-Founder, Robinhood Markets said:
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“We believe it will be accretive over the long-term and removes any distractions for shareholders. We are now seeing significant traction on a few of the products that we launched. This gives us confidence that they can grow into important business lines.
Robinhood will buy shares at the market price, but it is not clear when or if this will happen.
Robinhood Q4 Results


Robinhood’s total net revenues increased by 5% to $380 million in quarter four. The net loss was $166million, compared to $175 million in 2022’s third quarter. The loss has decreased for the firm.
Robinhood shares fell nearly 1% to $10.47 on Wednesday after market close. Pre-market hours, the HOOD shares prices are almost 5% higher at 10.97.
Also read: Coinbase CEO Says SEC Could Ban Crypto Staking

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