2023-02-13
In May 2023, Sam Bankman-Fried bought 7.6% stake in Robinhood worth $546 million. He bought Robinhood shares through one of his companies called Emergent Fidelity Technologies. Bankman-Fried took $546 million loans from Alameda Research. Alameda Research probably took the funds from FTX customers' assets.
After FTX went bankrupt, US federal prosecutors confiscated assets of Sam Bankman-Fried including
1.
55,273,469 shares of Robinhood (worth $551 million as of February 10, 2023)
2. $20,746,713.67 in United States currency formerly on deposit
in Account Numbers 499-30500 and 429-30500 at ED&F Man Capital Markets,
Inc., a/k/a “Marex,” held in the name of “Emergent Fidelity Technologies”.
3. $49,999,500 in United States currency formerly on
deposit in Account Number 9000-1924-02685 at Farmington State Bank d/b/a
“Moonstone Bank” held in the name of “FTX Digital Markets”.
4. $5,322,385.32 in United States currency formerly held on deposit in Account Number 0000005090042549 at Silvergate Bank held in the name of “FTX Digital Markets”.
Currently 55,273,469 shares of Robinhood is under custody of US Justice Department.
Robinhood Board of Directors has approved a plan to
buy back $551 million Robinhood stake that Emergent Fidelity Technologies bought in May
2022. Vlad Tenev Robinhood CEO said that the board has
approved the purchase of 55 million shares. He views the purchase as a way to remove
distraction for Robinhood shareholders. Bankman-Fried is under court process,
the court is tracking down FTX and Bankman’s Fried assets to pay back
creditors. Sam
Bankman-Fried is scheduled to go to court hearing and face trial on October
2023. If he found guilty, $700 million of his assets will be confiscated and
pay back to creditors.
For more information, Robinhood's fourth quarter filing.
