In the maelstrom that followed FTX’s downfall, the Robinhood stake was contested by four separate entities: FTX; Bankman-Fried himself; the bankrupt crypto lender BlockFi, which argued that Emergent had pledged the shares to it as collateral on a loan; and an individual FTX creditor.
Ultimately, Robinhood repurchased the stake from the United States Marshal Service, which had custody of the shares after they were seized.
Robinhood shares jumped more than 3.5% Friday.
“We are happy to have completed the purchase of these shares and look forward to executing on our growth plans on behalf of our customers and shareholders,” Jason Warnick, Robinhood’s chief financial officer, said in a statement.
US prosecutors accused Bankman-Fried, 31, of orchestrating a multi-billion-dollar fraud in which he lied to investors and illegally siphoned funds from FTX customers. He has pleaded not guilty to all the charges against him and is scheduled for trial in October.
