Robinhood buys back seized SBF stock, FTX creditors recover another claim?

According to a report from Reuters, U.S. brokerage firm Robinhood has signed a stock repurchase agreement with the U.S. Marshals Service (USMS) to repurchase Robinhood shares held by SBF's Emergent Fidelity Technologies for $605.7 million.

Sold Stocks Could Return to FTX Creditors

After the bankruptcy of FTX, founder SBF claimed to hold 7.6% of Robinhood shares through Emergent Fidelity Technologies, becoming the focus of contention. Previously, BlockFi, FTX, and SBF himself all claimed ownership of these shares, but in January of this year, these stocks were directly seized by the U.S. Department of Justice!

Court records show that Manhattan federal judge Lewis Kaplan approved the transaction. Kaplan, who oversees the criminal case against SBF, stated in an order announced on August 28:

The proposed stock purchase agreement by Robinhood is "appropriate" and "in the best interests of the relevant stakeholders."

The amount of the repurchased stocks is expected to return to the hands of FTX creditors.

Hood Stock Price Rises 2%

Robinhood has previously mentioned multiple times about repurchasing the stocks acquired by Emergent Fidelity Technologies. Robinhood stated that the 55 million shares will be repurchased at a price of $10.96 per share, while according to previous reports, SBF bought in at around $10 in May of last year. Yesterday, Robinhood's stock rose by 2.02%, closing at $11.11.