Crypto and stock trading platform Robinhood (HOOD) has executed a nine-figure buyback of its own shares from FTX’s former executives, including disgraced boss Sam Bankman-Fried and his fellow co-founder Gary Wang.
The purchase secured 55,273,469 HOOD shares worth $605.7 million.
Robinhood entered into the purchase agreement with the United States Marshal Service (USMS) on August 30, and closed the transaction the following day.
“The Company funded the purchase of the Shares from corporate cash available from its balance sheet,” stated the agreement’s Form 8-K filing on Thursday.
Robinhood’s Board of Directors had already authorized the company to pursue purchasing most or all of the shares on February 8, 2023. Before that, Bankman-Fried and Wang owned the shares via the former’s hedge fund Emergent Fidelity Technologies, which filed for bankruptcy at the time.
The government confiscated close to $700 million worth of Bankman-Fried’s assets in January, including $455 million worth of HOOD shares, despite his lawyers’ fight to keep them. Prosecutors believe those shares were purchased using former FTX customers’ stolen money.
Robinhood’s average purchase price per share was $10.96 – below the market’s current trading value of $11.18.
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