Robinhood to buy Sam Bankman-Fried's stake for $605 million

In August 2023, as a result of hacker attacks, scammers stole $23.3 million. This is evidenced by data from the Immunefi report.

This is almost 14 times less than in July, when attackers stole $320 million in cryptocurrency. According to the report, all attacks were carried out on decentralized finance (DeFi) protocols. Neither incident affected centralized exchanges.

Online broker Robinhood will buy back 55 million shares of its company worth $605.7 million, which previously belonged to the founder of the collapsed FTX, Sam Bankman-Fried. This is stated in the report to the SEC.

The Southern District of New York court approved the agreement on August 28.

After the collapse of the crypto exchange, the US Department of Justice seized the securities of its ex-head.

The transaction itself was completed on May 13, 2022 - an organization affiliated with FTX purchased 56.28 million shares of the online broker for $648.29 million. The assets were kept by ED&F Man Capital Markets.

In late December 2022, Bankman-Fried said in court testimony that he and trading platform co-founder Gary Wang formed Emergent Fidelity Technologies to buy a 7.6% stake in the financial platform.

Robinhood first announced plans to return the shares in February 2023. Then the company's board of directors approved the deal and allocated funds for it.

The firm's shares were up 3.9% by early Friday trading at $11.31, according to MarketWatch.

Previously, analytics platform specialists linked Robinhood to the third largest number of bitcoins – 26,081 BTC (~$3.09 billion).

Let's remember that in the second quarter, the online broker's income from operations with digital assets decreased by 18.5% year-on-year, to $31 million. The company stored $12 billion in cryptocurrencies on behalf of clients.