Robinhood to buy back SBF's 605.8m stock position seized by US government

In September 2023, Robinhood agreed to repurchase a large block of its own shares that had been seized by the U.S. government from Sam Bankman-Fried’s investment vehicle, Emergent Fidelity Technologies. The stake was about 55.3 million Robinhood shares, valued at roughly $605.8 million, and the purchase was part of the federal government’s effort to liquidate assets tied to Bankman-Fried after the collapse of FTX. The transaction mattered because Robinhood had been one of the most closely watched holdings associated with Bankman-Fried, who had accumulated the position before FTX’s downfall. By buying back the shares from the government, Robinhood removed an overhang from its stock and the government converted a confiscated asset into cash, while creditors and bankruptcy proceedings around FTX continued to work through claims on the remaining estate.

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