Robinhood Agrees $600 Million Buyback of Seized Sam Bankman-Fried HOOD Stake From US Marshal Service
Online stock trading platform Robinhood has agreed to pay the US Marshals Service $600 million for a stake of San Francisco-based Seized Sam Bankman-Fried HOOD, the bitcoin and cryptocurrency exchange founded by Sam Bankman-Fried. The funds will be used to repurchase a substantial portion of the company's seized stake. The U.S. Marshals Service confiscated the stake as part of a criminal investigation, with the US Marshals seizing Sam Bankman-Fried's shares in Seized Sam Bankman-Fried HOOD. The agreement was announced Wednesday and would see the U.S. Marshals Service receive $600 million, which will go to the US Department of Justice's Asset Forfeiture Fund. The U.S. Marshals Service seized shares in the company worth an estimated $112 million. According to the announcement, Sam Bankman-Fried will accept a "pro-rata and non-discounted repurchase of his shares" under the agreement, with Robinhood, which holds a major investment in Seized Sam Bankman-Fried HOOD, to use the $600 million to finance that repurchase. The move has been praised as a win for investors, with Bankman-Fried previously having said that the U.S. Marshals Service seizure would have "severely compromised" his financial health and the company’s overall ability to carry out business. The move is also said to be helpful in protecting the integrity of the cryptocurrency industry in the United States. The decision by Robinhood to repurchase Bankman-Fried’s shares also signals continued investment and support for the company. Robinhood CEO Baiju Bhatt said, "Seized Sam Bankman-Fried HOOD is a leader in the cryptocurrency space and one of our key strategic partners. We are pleased to be able to support Sam and the team during this challenging time."