{"id":1840725,"date":"2023-02-09T08:50:29","date_gmt":"2023-02-09T13:50:29","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1840725"},"modified":"2023-02-09T08:52:38","modified_gmt":"2023-02-09T13:52:38","slug":"robinhood-approves-plan-to-buy-back-sam-bankman-frieds-578m-stake","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/robinhood-approves-plan-to-buy-back-sam-bankman-frieds-578m-stake\/","title":{"rendered":"Robinhood Approves Plan to Buy Back Sam Bankman-Fried\u2019s $578M Stake"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Frobinhood-approves-plan-to-buy-back-sam-bankman-frieds-578m-stake%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1840725&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<div class=\"TopBanner-container\" data-top-banner-placeholder=\"true\"><\/div>\n<\/div>\n<div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\">\n<div class=\"RenderKeyPoints-keyPoints\" id=\"RegularArticle-KeyPoints-4\" data-test=\"keyPoints-1\" data-analytics=\"RegularArticle-keyPoints-4-1\">\n<div class=\"RenderKeyPoints-wrapper\">\n<div class=\"RenderKeyPoints-list\">\n<div>\n<div class=\"group\">\n<ul>\n<li>Robinhood&#8217;s board approved a plan by Sam Bankman Fried to purchase shares of the company that amount to more than 7 percent.<\/li>\n<li>Robinhood stated that it is working with the Department of Justice to develop the plan, but can&#8217;t promise when or if it will be implemented.<\/li>\n<li>Bankman-Fried and a group of domestic and international entities, including BlockFi, are disputing the 55 million shares.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"ArticleBody-articleBody\" id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\">\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-107048472\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<div class=\"InlineImage-imageEmbedCredit\"> Lightrocket | Sopa Images | Lightrocket | Getty Images<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>The board directors of <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\"><a href=\"https:\/\/www.cnbc.com\/quotes\/HOOD\/\">Robinhood<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\"><span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\"><\/span><\/button><\/span><\/span><\/span> has approved a plan to buy up to 55 million shares bought by Sam Bankman-Fried last year. The ex-CEO of the now bankrupt crypto exchange FTX <a href=\"https:\/\/www.cnbc.com\/2022\/05\/12\/robinhood-shares-pop-more-than-20percent-after-sam-bankman-fried-buys-7point6percent-stake.html\">originally purchased his stake in May 2022<\/a> through Emergent Fidelity Technologies.<\/p>\n<p>The retail brokerage is working with the Department of Justice, which seized the shares in January, to facilitate the move.<\/p>\n<p>Shares of Robinhood are up more than 3% in after-hours trading following the release of its <a href=\"https:\/\/s28.q4cdn.com\/948876185\/files\/doc_news\/Robinhood-Reports-Fourth-Quarter-and-Full-Year-2022-Results-2023.pdf\" target=\"_blank\" rel=\"noopener\">quarterly earnings report<\/a> that showed net revenue rising 5% from last quarter to $380 million.<\/p>\n<p>&#8220;Our board authorized us to buy the shares of Robinhood that were originally acquired by Emergent Fidelity Technologies, that FTX subsidiary,&#8221; Robinhood Chief Financial Officer Jason Warnick told CNBC.<\/p>\n<p>&#8220;And that&#8217;s been a big question on shareholders&#8217; minds, and a technical overhang, what&#8217;s going to happen with these shares,&#8221; Warnick said.<\/p>\n<p>&#8220;The board has authorized us to go and repurchase those and so we&#8217;re in discussions with the DOJ on that. Hard to tell exactly what the timeline is going to be,&#8221; Warnick added.<\/p>\n<p>&#8220;Since there is limited precedent for this type of situation, we cannot predict when, or if, the share purchase will take place. We will provide updates as appropriate,&#8221; the company said in its earnings report release.<\/p>\n<p>According to a Jan. 20 filing by the DOJ, Bankman-Fried held 55,273,469 Robinhood shares, <a href=\"https:\/\/www.cnbc.com\/2022\/05\/12\/robinhood-shares-pop-more-than-20percent-after-sam-bankman-fried-buys-7point6percent-stake.html\">over 7% of the company&#8217;s outstanding shares<\/a>. As of Wednesday&#8217;s close, that stake is valued at over $578 million.<\/p>\n<p>Emergent Fidelity was controlled by both Bankman-Fried and fellow FTX co-founder Gary Wang. Both Wang and Bankman-Fried took out loans directly from Alameda Research to fund the acquisition, according to court filings. The shares are also at the heart of a contentious court battle between FTX, Bankman-Fried, crypto lender BlockFi and a set of international entities.<\/p>\n<p>\u2014 <em>CNBC&#8217;s Kate Rooney contributed to this report.<\/em><\/p>\n<\/div>\n<\/div>\n<div class=\"WatchLiveRightRail-inline WatchLiveRightRail-container\" id=\"RegularArticle-WatchLiveRightRail-7\" data-test=\"watchLiveRightRail-4\" data-analytics=\"RegularArticle-watchLiveRightRail-7-4\">\n<div class=\"WatchLiveRightRail-contents\"><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButton\">WATCH LIVE<img decoding=\"async\" src=\"https:\/\/static-redesign.cnbcfm.com\/dist\/4db8932b7ac3e84e3f64.svg\" class=\"WatchLiveRightRail-logo\" alt=\"logo\"   style=\"display:none\"><\/a><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButtonMobile\">WATCH IN THE APP<\/a><\/div>\n<\/div>\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\"><\/div>\n<div class=\"PageBuilder-col-12 PageBuilder-col PageBuilder-article\">\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Robinhood&#8217;s board approved a plan by Sam Bankman Fried to purchase shares of the company that amount to more than 7 percent. Robinhood stated that it is working with the Department of Justice to develop the plan, but can&#8217;t promise when or if it will be implemented. Bankman-Fried and a group of domestic and international &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1899586,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[18123,4255,8222,4025,3853,6912,3831],"class_list":["post-1840725","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-578m","tag-approves","tag-bankman-frieds","tag-plan","tag-robinhood","tag-sam","tag-stake"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1840725","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1840725"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1840725\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1899586"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1840725"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1840725"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1840725"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}