Previously, Sam Bankman-Fried purchased 7.6% shares from Robinhood markets. Now, Robinhood Markets Inc wants to repurchase the shares from Sam Bankman-Fried. Noteworthy, Robinhood Board have approved the plan to buy back the contested $575 million in stock seized from FTX’s Sam Bankman-Fried.
Robinhood Markets, Inc. is an American financial services company headquartered in Menlo Park, California, that facilitates commission-free trades of stocks, exchange-traded funds and cryptocurrencies as well as individual retirement accounts via a mobile app introduced in March 2015
Samuel Benjamin Bankman-Fried, was the founder and CEO of the FTX Cryptocurrency Exchange and associated trading firm Almeda Research, both of which experienced a high-profile collapse resulting in Chapter 11 Bankruptcy in late 2022.
Bankman-Fried’s stake in Robinhood was struck in a legal battle between Sam, FTX’s new bosses, BlockFi and Yantan Ben Shimon, FTX creditor. All the parties have laid claim to Emergent’s stake in Robinhood.
This buy back of shares move according to CEO Vlad Tenev would remove a distraction for shareholders and the board of directors of Robinhood also feel the same. He also pointed to how there is no clear precedent for cases like FTX and it is not possible to predict how long it will take for the legal proceedings to come to an end.
Other crypto exchanges charge up to 4% just to buy and sell crypto. Robinhood charge 0%. Users can get BTC, ETH, LTC, DOGE, and more with as little as $1. Users can buy crypto within just 5 minutes with no commission fees.
The declaration by Robinhood clarifies: Cryptocurrency trading is offered through an account with Robinhood Crypto. Robinhood Crypto is not a member of SIPC or FINRA. Cryptocurrencies are not stocks and your cryptocurrency investments are not protected by either FDIC or SIPC. Information about Robinhood Crypto’s state licenses are found online and users will be able to see the full Crypto Risk Disclosure online.
Under certain market conditions, you may find it difficult or impossible to liquidate a position
quickly at a reasonable price. This can occur, for example, when the market for a particular
cryptocurrency suddenly drops, or if trading is halted due to recent news events, unusual trading
activity, or changes in the underlying cryptocurrency system.
The greater the volatility of a particular cryptocurrency, the greater the likelihood that problems
may be encountered in executing a transaction. In addition to normal market risks, you may
experience losses due to one or more of the following: system failures, hardware failures,
software failures, network connectivity disruptions, and data corruption.
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