Brokerage firm Robinhood has repurchased shares formerly owned by Sam Bankman-Fried's company, Emergent Fidelity Technologies.
The shares were seized and placed in the custody of the U.S. Marshals Service after FTX and Bankman-Fried's Emergent Fidelity filed for bankruptcy protection last year. The repurchase agreement was approved by the U.S. District Court for the Southern District of New York on August 28.
According to Robinhood's August 30 filing with the SEC, the company repurchased 55,273,469 shares at a price of $10.96. The total value of the transaction is $605.69 million.
"We are happy to have completed the purchase of these shares and look forward to executing our growth plans on behalf of our clients and shareholders," said Jason Warnick, CFO of Robinhood, commenting on the transaction.
Emergent Fidelity Technologies has owned shares of Robinhood since May 2022. Robinhood announced its plans to buy back the shares after Emergent Fidelity Technologies filed for bankruptcy.
It's worth noting that, in addition to Robinhood, several parties have claimed the stake. BlockFi also filed a lawsuit against Emergent for attempting to take control of Robinhood's shares, which BlockFi claims are secured assets.
Following the disclosure of the deal, Robinhood's shares rose more than 3 percent in premarket trading.
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