{"id":1947108,"date":"2023-02-08T23:33:58","date_gmt":"2023-02-09T04:33:58","guid":{"rendered":"https:\/\/platoaistream.com\/plato-data\/robinhood-aims-to-buy-back-its-shares-seized-by-department-of-justice-in-ftx-failure\/"},"modified":"2023-02-08T23:33:58","modified_gmt":"2023-02-09T04:33:58","slug":"robinhood-aims-to-buy-back-its-shares-seized-by-department-of-justice-in-ftx-failure","status":"publish","type":"station","link":"https:\/\/platoaistream.com\/plato-data\/robinhood-aims-to-buy-back-its-shares-seized-by-department-of-justice-in-ftx-failure\/","title":{"rendered":"Robinhood aims to buy-back its shares seized by Department of Justice in FTX failure"},"content":{"rendered":"<div><img decoding=\"async\" src=\"https:\/\/platoaistream.com\/wp-content\/uploads\/2023\/02\/robinhood-aims-to-buy-back-its-shares-seized-by-department-of-justice-in-ftx-failure.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<p>Robinhood Markets Inc., the U.S.-based financial services company, plans to purchase the 55 million of its shares that FTX-linked Emergent Fidelity Technologies bought in May 2022, according to its <a href=\"https:\/\/s28.q4cdn.com\/948876185\/files\/doc_financials\/2022\/q4\/Q4-2022-Robinhood-Exhibit-99.1-vDISTRIBUTION.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">earnings report<\/a> released Wednesday. The shares, worth more than US$550 million, are the subject of a creditor dispute in the FTX bankruptcy.<\/p>\n<p><strong><em>See related article:<\/em><\/strong><a href=\"https:\/\/forkast.news\/headlines\/authorities-seize-robinhood-shares-ftx\/\" rel=\"noopener\"> U.S. authorities to seize US$460 mln of Robinhood shares in FTX fraud case<\/a><\/p>\n<h2>Fast facts<\/h2>\n<ul>\n<li>The FTX exchange founder Sam Bankman-Fried and cofounder Gary Wang last year formed Emergent Fidelity to<a href=\"https:\/\/forkast.news\/headlines\/sam-bankman-fried-used-alameda-research-money-to-buy-robinhood-shares\/\" rel=\"noopener\"> purchase 56 million Robinhood shares<\/a> with US$546 million in loans from Alameda Research, the brokerage arm of FTX.<\/li>\n<li>\u201cThe proposed share purchase underscores the confidence the Board of Directors and management team have in our business,\u201d Robinhood said in its earnings report.<\/li>\n<li>However, ownership of the shares is <a href=\"https:\/\/forkast.news\/headlines\/ftx-court-million-robinhood-frozen\/\" rel=\"noopener\">in dispute<\/a> among three parties \u2014 bankrupt crypto lender BlockFi, FTX creditor Yonathan Ben Shimon, and Bankman-Fried. All three have filed court actions to gain control of the stake.<\/li>\n<li>Last month, the U.S. Department of Justice said in a<a href=\"https:\/\/www.pacermonitor.com\/view\/CUWLH7I\/BlockFi_Inc__njbke-22-19361__0203.0.pdf?mcid=tGI4TONY\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"> court filing<\/a> that it has seized the shares. Robinhood <a href=\"https:\/\/www.cnbc.com\/2023\/02\/08\/robinhood-plans-to-buy-back-sam-bankman-frieds-578-million-stake.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">said<\/a> it\u2019s in discussions with the DoJ about buying back the stake.<\/li>\n<li>FTX collapsed in November 2022 after it ran out of funds to meet customer withdrawals. U.S. Federal prosecutors later charged Bankman-Fried <a href=\"https:\/\/forkast.news\/sam-bankman-fried-home-for-christmas-after-making-us250-million-bail-in-u-s\/\" rel=\"noopener\">with a list of financial crimes<\/a>, including securities fraud, money laundering, and campaign finance violations.<\/li>\n<li>Last week, Emergent Fidelity<a href=\"https:\/\/www.deb.uscourts.gov\/recently-filed-chapter-1115s\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"> filed<\/a> for Chapter 11 bankruptcy protection at the United States Bankruptcy Court for the District of Delaware. FTX and dozens of its affiliates filed for bankruptcy on Nov. 11 last year.<\/li>\n<li>In the fourth quarter of 2022, Robinhood\u2019s cryptocurrency revenue fell 24% to US$39 million from the previous quarter, according to its earnings report.<\/li>\n<\/ul>\n<p><strong><em>See related article:<\/em><\/strong><a href=\"https:\/\/forkast.news\/headlines\/sam-bankman-fried-used-alameda-research-money-to-buy-robinhood-shares\/\" rel=\"noopener\"> Sam Bankman-Fried used Alameda Research money to buy Robinhood shares<\/a><\/p>\n<ul class=\"plato-post-bottom-links\">\n<li class=\"plato-post-bottom-link-amplifi\">SEO Powered Content &amp; PR Distribution. <a href=\"https:\/\/www.amplifipr.com\" target=\"_blank\" rel=\"noopener\">Get Amplified Today.<\/a><\/li>\n<li class=\"plato-post-bottom-link-platoblockchain\">Platoblockchain. Web3 Metaverse Intelligence. Knowledge Amplified. <a href=\"https:\/\/platoblockchain.com\" target=\"_blank\" rel=\"noopener\">Access Here.<\/a><\/li>\n<li class=\"plato-post-bottom-link-source\"><span>Source:<\/span> <a href=\"https:\/\/forkast.news\/headlines\/robinhood-aims-to-buy-back-its-shares-seized-by-department-of-justice-in-ftx-failure\/\" target=\"_blank\" rel=\"noopener\">https:\/\/forkast.news\/headlines\/robinhood-aims-to-buy-back-its-shares-seized-by-department-of-justice-in-ftx-failure\/<\/a><\/li>\n<\/ul>\n","protected":false},"author":1,"featured_media":1947109,"template":"Default","meta":{"_eb_attr":"","type":"","auto_type":false,"post":"","stream":"","stream_url":"","waveform_data":[],"duration":0,"start":0,"end":0,"bpm":0,"downloadable":false,"download_url":"","purchase_title":"","purchase_url":"","post-count-all":0,"like_count":0,"download_count":0,"editor_note":"","copyright":"","captions":[],"sources":[]},"genre":[41],"station_tag":[3759,9410,13775,9160,9080,9180,10303,39830,15932,19810,25395,3761,3787,18340,4705,4135,28443,39877,19655,6043,6153,21993,15280,4902,3997,5476,36133,4440,4053,3635,3636,4883,8798,15002,15593,5419,3829,6243,40250,3830,3946,9883,4529,23000,3641,19416,3767,11739,7402,38737,4946,11182,10794,4062,13091,4947,39855,3898,7320,3797,4308,4271,5702,3843,3900,4176,31267,40167,4534,15955,4071,13776,5345,37075,15546,38312,3799,20730,39826,18595,3650,19265,4980,3953,3653,4952,27164,17818,24100,18762,3911,4319,4090,41713,3960,28755,3741,15944,3705,4954,10784,10997,37177,11045,40548,4857,11936,7457,8453,9642,12190,11469,29018,4214,6991,9709,39867,11815,3744,3710,3868,3870,9421,29204,16808,4024,45205,5787,5393,3975,4026,3872,42640,4393,3978,12890,10092,4229,13215,13569,19267,3981,7502,3982,3983,38738,11564,3815,18197,3784,3717,14555],"artist":[10757],"mood":[],"activity":[],"_links":{"self":[{"href":"https:\/\/platoaistream.com\/wp-json\/wp\/v2\/station\/1947108"}],"collection":[{"href":"https:\/\/platoaistream.com\/wp-json\/wp\/v2\/station"}],"about":[{"href":"https:\/\/platoaistream.com\/wp-json\/wp\/v2\/types\/station"}],"author":[{"embeddable":true,"href":"https:\/\/platoaistream.com\/wp-json\/wp\/v2\/users\/1"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/platoaistream.com\/wp-json\/wp\/v2\/media\/1947109"}],"wp:attachment":[{"href":"https:\/\/platoaistream.com\/wp-json\/wp\/v2\/media?parent=1947108"}],"wp:term":[{"taxonomy":"genre","embeddable":true,"href":"https:\/\/platoaistream.com\/wp-json\/wp\/v2\/genre?post=1947108"},{"taxonomy":"station_tag","embeddable":true,"href":"https:\/\/platoaistream.com\/wp-json\/wp\/v2\/station_tag?post=1947108"},{"taxonomy":"artist","embeddable":true,"href":"https:\/\/platoaistream.com\/wp-json\/wp\/v2\/artist?post=1947108"},{"taxonomy":"mood","embeddable":true,"href":"https:\/\/platoaistream.com\/wp-json\/wp\/v2\/mood?post=1947108"},{"taxonomy":"activity","embeddable":true,"href":"https:\/\/platoaistream.com\/wp-json\/wp\/v2\/activity?post=1947108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}