Robinhood Bought Back Sam Bankman-Fried's Stake From US Government For $606 Million

Robinhood announced it has purchased more than 55 million shares of the firm previously held by former FTX CEO Sam Bankman-Fried, which were seized in January by the U.S. Department of Justice as part of the criminal case against FTX and its executives. CoinTelegraph reports: The purchase had been expected. Robinhood's board of directors announced the approval of the deal in the company's Q4 2022 report, and an Aug. 30 SEC filing said the U.S. District Court for the Southern District of New York had approved the purchase "free and clear of any claims, interests, liens and encumbrances." Robinhood made the repurchase agreement with the U.S. Marshals Service. "We are happy to have completed the purchase of these shares and look forward to executing on our growth plans on behalf of our customers and shareholders," said Robinhood chief financial officer Jason Warnick.

robinhood shilling for rich people over GameStop

[Dan667]

at this point anyone stupid enough to keep doing business with robinhood gets what they deserve. They completely screwed their Customers to shill for rich people to lose less money on GameStop shorts. Why would anyone continue to do business with a company that so blatantly has no interest in their regular Customers?

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[m00sh]

I'll support robinhood over wallstreetbets any day.

Re: robinhood shilling for rich people over GameSt

[kenh]

Why would anyone continue to do business with a company that so blatantly has no interest in their regular Customers?

First off, SBF was stupid, he's the individual that held $606M in robinhood shares.

Second, no one individual bought the shares, Robibhood itself bought back the shares (most likely to avoid a collapse in share price if the Feds just dumped 55 million shares on the open market to cash out the position.

Third, I'm impressed that Robinhood was able to come up with $606M.

And finally, it's a good thing, it adds $606M to the pot to repay SBF/FTX investors.

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[Zekolas]

Stop believing dumb conspiracy theories ; just because you do not understand something doesn't make it a conspiracy. RH ran out of money to clear trades. Now that makes RH a shitty brokerage yes, its unbelievable they mismanaged their margin so badly . They didn't shill for rich people. Now go back to your qannon hole

Re: robinhood shilling for rich people over GameSt

[StigNasty]

Thatâ(TM)s closer to the truth. They hadnâ(TM)t prepared for a sudden surge in trading activity. Federal regulations state they have to have a certain amount of cash on hand above trading volume. There is a 3 day settlement period to transfer funds from stock trades. Technically, when they let you trade right away, they are giving you an advance on money they donâ(TM)t physically have yet, and if money could settle more quickly (such as with crypto), it wouldnâ(TM)t have been an issue.

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[blue trane]

Does FedNow fix the problem, finally?

Re: robinhood shilling for rich people over GameSt

[reanjr]

You are aware all major brokers did the same thing right? Who's the alternative?

In other words

[Rosco P. Coltrane]

The US government profits from the crypto scam too.

Wow. When a predatory outfit

[hdyoung]

Like Robinhood coughs up 600 million bucks for a stock buyback, just so they can avoid being associated with SBF and FTX.

That’s kinda like Trump saying “nah, this guy is too skeezy for me to associate with”. Wow. You know it’s gotta be bad. Reeeeaaallllllyyy bbbaaaddddd.

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[RazorSharp]

Maybe they don't want the U.S. government to own a large stake in their company. I could imagine several reasons why. It might make their customers nervous, they might not want the government having additional access to their finances/records, etc.

Where else can you get cheaper options trading?

[blue trane]

Who is the OCC and why are they taking more than my profit in options trading fees?

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[m00sh]

Before robinhood, trading cost $10 per trade.

Now, we bitch about needing cheaper options trading.

Can't have SBF involved in your company

[thesjaakspoiler]

Before you know it there will be hot office orgies with Carolines and things like that.

Robinhood bribes U.S. Marshal Service?

[Mirnotoriety]

“The amount Robinhood paid for the stock was roughly 33% more than what they were worth [marketwatch.com] when the DOJ seized them from FTX founder Sam Bankman-Fried”

How Is This Legal?

[organgtool]

I'm certainly no fan of SBF, but I don't think he's even had a trial yet. If by some miracle he's found not guilty of all charges, is the federal government going to buy back those shares and transfer them to him?