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☆ Robinhood pays $605 million for 55 million shares once owned by Sam Bankman-Fried following a 4-way tussle
▼ + stars: | 2023-09-02 | by ( Ryan Hogg | ) www.businessinsider.com time to read: +2 min

Robinhood bought 55 million of its shares worth $605 million that Sam Bankman-Fried once owned. Robinhood, SBF, FTX, and a bankrupt crypto lender had all laid claim to the seized shares. AdvertisementAdvertisementRobinhood has bought back more than $600 million worth of its own shares that were owned by Sam Bankman-Fried before his arrest. In a regulatory filing with the Securities and Exchange Commission (SEC) Friday, the trading platform said it had acquired 55 million shares from the United States Marshal Service (USMS). Shares in Robinhood closed 2% higher Friday following the release of the filing, valuing the company at about $10 billion.

Persons: Robinhood, Sam Bankman, Fried, FTX, BlockFi Organizations: Department of Justice, Morning, Securities and Exchange Commission, SEC, United States Marshal Service, DoJ, Emergent Fidelity Technologies, Emergent Fidelity, Marshal Service Locations: Bankman, Robinhood

REUTERS/Andrew Kelly/File Photo Acquire Licensing RightsSept 1 (Reuters) - Robinhood (HOOD.O) said on Friday it had entered into a share repurchase agreement with the United States Marshal Service (USMS) for $605.7 million to buy back stock from Sam Bankman-Fried's Emergent Fidelity Technologies. The shares of Robinhood were seized and subsequently transferred to the custody of the U.S. government after Bankman-Fried's FTX and Emergent filed for bankruptcy protection last year. Robinhood shares climbed more than 3% in premarket trading on the news. The online brokerage said the sale of the 55.3 million shares at $10.96 apiece had been approved by the U.S. District Court for the Southern District of New York. Robinhood first disclosed its intention to buy back the stake in February and said the company's board had authorized it to pursue purchasing most or all of the stock.

Persons: Andrew Kelly, Sam Bankman, Robinhood, Fried, FTX, Palo, Manya Saini, Hannah Lang, Devika Syamnath, Mark Potter Organizations: Inc, REUTERS, United States Marshal Service, Emergent Fidelity Technologies, U.S, Southern, of, Reuters, Thomson Locations: New York City, U.S, Robinhood, of New York, United States, Manhattan, Palo Alto , California, Bengaluru, Washington

Feb 27 (Reuters) - Robinhood Markets Inc (HOOD.O) said in a filing on Monday it had received an investigative subpoena in December from the U.S. Securities and Exchange Commission related to listings of cryptocurrencies. The collapse of Sam Bankman-Fried's FTX was the biggest in a string of major crypto-related failures in 2022, which sparked a cryptocurrency rout and left creditors facing losses of billions of dollars. The SEC has maintained that pre-existing securities laws also apply to digital assets and that many crypto tokens meet the definition of a security, which the crypto industry has previously criticized. Robinhood said the subpoena it received from the SEC was regarding the supported currencies at Robinhood Crypto LLC, which is a wholly-owned subsidiary of the brokerage, as well as its custody of cryptocurrencies and other platform operations. Reporting by Anirban Chakroborti in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

☆ BlockFi Seeks to Strip Sam Bankman-Fried’s Investment Vehicle of Bankruptcy Protections
▼ + stars: | 2023-02-17 | by ( Andrew Scurria | ) www.wsj.com time to read: 1 min

Crypto lender BlockFi Inc. has asked for a court ruling stripping Sam Bankman-Fried‘s offshore investment vehicle of the protections of chapter 11, citing the recent seizure of its assets by federal prosecutors. BlockFi, itself bankrupt since November, sought Thursday to dismiss the bankruptcy case of Emergent Fidelity Technologies Ltd., the offshore investment vehicle that Mr. Bankman-Fried used to purchase a 7.6% stake in Robinhood Markets Inc. The chapter 11 case serves little purpose and was only filed to undermine BlockFi’s...

☆ Robinhood Needs More Arrows to Fire
▼ + stars: | 2023-02-09 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

Robinhood Markets is emulating its users and buying some stock: Its own. Now it needs customers to get back in the game, too. Robinhood said it aims to buy back all or most of the stake in itself that was bought by Emergent Fidelity Technologies, a vehicle used by Sam Bankman-Fried to acquire the shares last year.

☆ Robinhood revenues rises on higher rates, plans share buyback from Emergent
▼ + stars: | 2023-02-08 | by ( Manya Saini | ) www.reuters.com time to read: +2 min

Robinhood also authorized the purchase of its shares from Sam Bankman-Fried's Emergent Fidelity Technologies, even as the ownership of the stock remains in flux amid multiple legal hurdles. Combined with worries of an economic slowdown, the brokerage's transaction-based revenue in the quarter declined 30%. Net loss in the quarter narrowed to 19 cents per share, compared with 49 cents per share last year. The Menlo Park, California-based company reported revenue of $380 million in the three months ended Dec. 31, compared with $363 million a year earlier. Reporting by Manya Saini in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

The board of directors of Robinhood has approved a plan to buy up to 55 million shares bought by Sam Bankman-Fried last year. The ex-CEO of the now bankrupt crypto exchange FTX originally purchased his stake in May 2022 through Emergent Fidelity Technologies. "Our board authorized us to buy the shares of Robinhood that were originally acquired by Emergent Fidelity Technologies, that FTX subsidiary," Robinhood CFO Jason Warnick told CNBC. According to a Jan. 20 DOJ filing, Bankman-Fried held 55,273,469 Robinhood shares, over 7% of the company's outstanding shares. The shares are also at the heart of a contentious court battle between FTX, Bankman-Fried, crypto lender BlockFi, and a set of international entities.

☆ Sam Bankman-Fried's Robinhood shares have been seized by the Justice Department in FTX case
▼ + stars: | 2023-01-09 | by ( Brian Evans | ) www.businessinsider.com time to read: +2 min

The Department of Justice has seized $450 million worth of Robinhood shares held by Sam Bankman-Fried and Gary Wang. The roughly 55 million shares are owned by the two via a holding company, and have been the focus of an ownership dispute. In a recent court filing, the Justice Department said the Robinhood shares "constitute property involved in violations" such as money laundering and wire fraud. BlockFi, which is also in the middle of its own bankruptcy case, is arguing that the Robinhood stock should be in their possession. BlockFi sued Bankman-Fried for the Robinhood shares in November, saying a $1 billion pledge by Alameda Research to secure loan obligations included the stake.

☆ Sam Bankman-Fried says he needs some of his $450 million in Robinhood shares to fund his legal defense as he fights for control of the stake
▼ + stars: | 2023-01-06 | by ( Brian Evans | ) www.businessinsider.com time to read: +2 min

Sam Bankman-Fried is fighting for ownership of $450 million in Robinhood stock. Meanwhile FTX and BlockFi are laying claim to the shares. The stock is owned in principle by Bankman-Fried and FTX co-founder Gary Wang, and was purchased through Emergent Fidelity Technologies. Bankman-Fried and Wang used borrowed funds from Alameda Research to make the purchase which has been previously documented. Meanwhile, BlockFi's stated ownership of the shares of Robinhood stem from claims that the terms of a loan from BlockFi to FTX used the shares as collateral to guarantee repayment.

☆ Sam Bankman-Fried's $470 million Robinhood stake is set to be seized by US authorities, attorney says
▼ + stars: | 2023-01-05 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

Sam Bankman-Fried's Robinhood shares are set to be seized by US authorities, an attorney said Wednesday. Bankman-Fried, FTX's new bosses, bankrupt crypto lender BlockFi and FTX creditor Yonatan Ben Shimon have all laid claim to the Robinhood stake, per a December 22 court filing. Bankman-Fried disclosed a 7.6% stake in Robinhood in May, acquiring 56.3 million shares in the trading platform for $648 million through an Antigua-based holding company called Emergent Fidelity Technologies. Robinhood shares traded at $8.36 as of Wednesday's closing bell – meaning that Emergent's position is now worth just over $470 million. Read more: Sam Bankman-Fried is facing off against FTX's new bosses in a 4-way battle for $450 million of Robinhood shares

The Justice Department said Wednesday that has moved to seize millions of shares of Robinhood, the popular stock-trading app, whose ownership is disputed by several parties, including Bankman-Fried himself, his bankrupt crypto exchange FTX and another bankrupt crypto company. Four separate entities have laid claim to the approximately 56 million shares, worth about $460 million. That company, Emergent Fidelity Technologies, borrowed more than $546 million from crypto hedge fund Alameda Research, according to an affidavit Bankman-Fried filed in December. Also claiming the Robinhood shares are bankrupt crypto lender BlockFi and an individual FTX creditor. As of December 31, roughly $150 million of Silvergate’s deposits were from customers that have filed for bankruptcy.

[1/3] The logo of Robinhood Markets, Inc. is seen at a pop-up event on Wall Street after the company's IPO in New York City, U.S., July 29, 2021. The Department of Justice did not believe the 56 million shares of Robinhood, worth about $465 million, were property of a bankruptcy estate, U.S. attorney Seth Shapiro told U.S. Bankruptcy Judge John Dorsey, who is overseeing the FTX bankruptcy. Bankrupt crypto firm BlockFi, FTX and liquidators in Antigua have all laid claim to the Robinhood stock, along with Bankman-Fried. He said the Robinhood shares were subject to litigation and it was an "open question" about who owns them. BlockFi is suing Emergent in a bid to seize the Robinhood stock, which was pledged by Alameda as collateral to guarantee repayment of a loan made by BlockFi.

[1/3] The logo of Robinhood Markets, Inc. is seen at a pop-up event on Wall Street after the company's IPO in New York City, U.S., July 29, 2021. REUTERS/Andrew KellyJan 4 (Reuters) - U.S. prosecutors are in the process of seizing shares of Robinhood Markets Inc (HOOD.O) tied to Sam Bankman-Fried, who has been charged with fraud in the collapse of the FTX cryptocurrency exchange, a U.S. attorney told a judge on Wednesday. He said the Robinhood shares were subject to litigation and it was an "open question" about who owns them. The Robinhood stock, worth about $465 million at Wednesday's late afternoon price of $8.30 per share, is also being claimed by BlockFi Inc, another bankrupt crypto firm. BlockFi is suing Emergent in a bid to seize the Robinhood stock, which was pledged by Alameda as collateral to guarantee repayment of a loan made by BlockFi.

☆ FTX's Sam Bankman-Fried bought Robinhood stock using hundreds of millions of dollars from his trading firm Alameda Research
▼ + stars: | 2022-12-27 | by ( Phil Rosen | ) www.businessinsider.com time to read: +2 min

Disgraced FTX founder Sam Bankman-Fried took funds from his trading firm, Alameda Research, to buy Robinhood stock, court documents shows. Later, Alameda took out a loan and pledged those same shares as collateral, CoinDesk reported. Later, Alameda took out a loan and pledged those same shares as collateral, CoinDesk said. Now-bankrupt BlockFi alleged that it has rights to the Robinhood shares based on deals Bankman-Fried agreed to in November, a separate court document shows. The development is the latest example to come to light of how the finances of FTX, Alameda and other pieces of Bankman-Fried's empire were entangled.

☆ Bankrupt BlockFi has launched a lawsuit to get Sam Bankman-Fried to reportedly hand over Robinhood shares
▼ + stars: | 2022-11-29 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

BlockFi has sued Emergent Fidelity Technologies to recover stock pledged as collateral for a loan. The crypto lender says it wants Sam Bankman-Fried's holding company to hand over the shares. The collateral is Robinhood stock and the borrower was Alameda Research, the FT reported. Meanwhile, loan documents seen by the FT showed the collateral pledged was Bankman-Fried's stake in Robinhood, the FT report said. He was trying to sell his Robinhood shares after Emergent entered the agreement with BlockFi, the FT reported, citing two people familiar with the matter.

☆ Bitfront: The crypto winter claims another casualty after FTX's collapse
▼ + stars: | 2022-11-29 | by ( Diksha Madhok | ) edition.cnn.com time to read: +2 min

New Delhi CNN Business —Bitfront, a crypto exchange backed by Japanese social media app Line, is shutting down after failing to overcome turmoil in the industry. The announcement by the US-based exchange comes at a time when the market for digital assets is grappling with financial contagion unleashed by the spectacular collapse of another crypto exchange, FTX. Its decision to shut down the exchange came on the same day crypto lender BlockFi filed for bankruptcy. BlockFi, founded in 2017 by Zac Prince and Flori Marquez, made loans to customers using crypto assets as collateral. Shortly after filing for Chapter 11, BlockFi filed a lawsuit against FTX founder Sam Bankman-Fried’s Emergent Fidelity Technologies, demanding he turn over collateral that BlockFi claims it is owed.

☆ BlockFi sues a Bankman-Fried company to recover Robinhood shares
▼ + stars: | 2022-11-28 | by ( ) www.reuters.com time to read: +1 min

Nov 28 (Reuters) - Cryptocurrency lender BlockFi Inc has sued a holding company for FTX founder Sam Bankman-Fried, seeking to recover shares in Robinhood Markets Inc (HOOD.O) pledged as collateral three weeks ago, before BlockFi and FTX filed for bankruptcy protection. BlockFi in a complaint filed on Monday in New Jersey bankruptcy court said Emergent Fidelity Technologies Ltd has defaulted on its obligations under a Nov. 9 pledge agreement. Emergent guaranteed the repayment of obligations of Alameda Research Ltd, the crypto hedge fund affiliated with FTX, according to court documents. Emergent holds a 7.42% share of Robinhood, according to Eikon data. Reporting by Jonathan Stempel in New York; Editing by Mark Porter and Sam HolmesOur Standards: The Thomson Reuters Trust Principles.

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