- “The proposed share purchase underscores the confidence the Board of Directors and management team have in our business,” Robinhood said
- Now that Robinhood has the board’s approval, it would try its best to regain the equity from the fallen crypto giant
Robinhood, a U.S.-based trading platform, is planning to buy back its shares that were bought by a company of Sam Bankman Fried and his co-founder, Gary Wang.
However, while releasing the fourth quarter report, Robinhood Market Inc. confirmed that they have finally received the board’s approval to buy back the entire equity from Emergent Fidelity.
“The proposed share purchase underscores the confidence the Board of Directors and management team have in our business”
However, the three parties claiming the shares include FTX creditor Yonathan Ben Shimon, BlockFi, and SBF.
BlockFi Demands Robinhood Shares
BlockFi, a digital asset lending platform, has also claimed the Robinhood shares as SBF had used them as collateral for a loan. Right now, this claim is being contested in the court as SBF had asked the court to not release them for BlockFi. According to SBF, Emergent Fidelity had not filed for bankruptcy with the other sister firms of FTX, it could not be liquidated for FTX’s liabilities. However, Emergent Fidelity filed for Bankruptcy Protection last week.
SBF and Wang had also taken a loan from Alameda Research for buying seven percent of Robinhood. SBF told the court,
“I borrowed the sum of $491,743,563.39, and Gary borrowed the sum of $54,638,173.71 from Alameda [Research],” Bankman-Fried said in the filing. “All of the sums evidenced by the promissory notes were capitalized into Emergent as working capital so that it could purchase the shares in Robinhood.”
Now that Robinhood has the board’s approval, it would try its best to regain the equity from the fallen crypto giant. But the disputed ownership of the shares could become a legal battle for the trading platform to do so.
Also, Read – SEC Punishes Kraken for Selling Unregistered Securities
