The United States-based crypto company Robinhood has resolved to cut off and buy back Sam Bankman-Fried’s $578 million stake in its company as indicated in the latest Quarter 4 report.
Robinhood maintains that the shares were earlier bought by FTX founder Sam Bankman-Fried and co-founder Gary Wang in 2022 and have generated a series of controversies following the collapse of FTX exchange.
According to the Q.4 report, Robinhood’s board of directors revealed that it would buy back the $578 million stake in their company which was hitherto acquired last year.
The statement partly reads:
“Our Board authorized us to pursue purchasing most or all of our shares that Emergent Fidelity Technologies bought in May 2022… The proposed share purchase underscores the confidence the Board of Directors and management team have in our business.”
However, a detailed analysis revealed that FTX co-founders bought 55 million shares of Robinhood stock through Emergent Fidelity Technologies via loans from FTX’s sister firm, Alameda Research.
There is no mincing word that the Emergent Fidelity Technologies through the FTX’s sister firm, Alameda Research, has played significant role in several procurements by the former FTX founder SBF.
Prior to now, the United States Department of Justice (DOJ) seized the 55 million shares which was equivalent to 7% of the Robinhood company on Jan. 9.
Robinhood Struggles Amidst Bear Market
The United States-based trading platform Robinhoood recorded a significant drop of 24% in its Robinhood Web3 Wallet to $39 million in the fourth quarter. This occurred despite efforts by the company to cover more than 1 million waitlisted users.
Little wonder that the company announced that it would lay off 23% of its employees as part of measures to cushion the adverse macroeconomic conditions.
It is instructive to note that Robinhood’s stock, tickered HOOD, has surged by 4.78%, since the release of Q.4 report according to Google Finance.
