Robinhood will work with the Department of Justice to purchase Sam Bankman-Fried's shares, which amount to 7% of the company.
"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.
"And that's been a big question on shareholders' minds, and a technical overhang, what's going to happen with these shares," continued Warnick. "The board has authorized us to go and repurchase those and so we're in discussions with the DOJ on that. Hard to tell exactly what the timeline is going to be," Warnick said.
"Since there is limited precedent for this type of situation, we cannot predict when, or if, the share purchase will take place. We will provide updates as appropriate," the company said in its financial results release.over 7% of the company's outstanding sharesEmergent Fidelity was controlled by both Bankman-Fried and fellow FTX co-founder Gary Wang. Both Wang and Bankman-Fried took out loans directly from Alameda Research to fund the acquisition, according to court filings.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Robinhood Board Authorizes Purchase of Shares Bought by FTX’s Sam Bankman-Fried, Gary WangRobinhood’s board of directors authorized the company to pursue purchasing most or all of the 55 million shares that a holding company for former FTX execs Sam Bankman-Fried and Gary Wang bought in May 2022. By NelWang
Read more »
Robinhood cleared to buy FTX founder Sam Bankman-Fried's stock, sending shares higherRobinhood reported Q4 results that missed expectations, but the company's co-founders said they canceled nearly $500 million in share-based compensation.
Read more »
Sam Bankman-Fried Lawyer Says Agreement Has Been Reached on Use of Messaging AppsAn attorney for Sam Bankman-Fried said an agreement had been reached to modify the former FTX CEO’s bail conditions on using various messaging apps. By NelWang
Read more »
Sam Bankman-Fried lawyers reach agreement on use of messaging appsSam Bankman-Fried will still be able to use a number of messaging and calling services that don’t encrypt private communications, excluding WhatsApp, which he can use under supervision.
Read more »
Sam Bankman-Fried's other bail-backers' identities to be revealed?The two unknown guarantors who helped Sam Bankman-Fried secure bail may have their identities revealed as early as Tuesday following a federal judge's ruling.
Read more »
Sam Bankman-Fried Appeals Judge’s Decision to Reveal Names of His $250M Bond BackersSam Bankman-Fried has appealed a judge’s decision to allow the identities of the two currently unidentified people who co-signed his $250 million bail bond to be made public. By NelWang
Read more »