The board of directors of Robinhood has approved a plan to repurchase the $578 million stake in the company purchased last year by former FTX CEO Sam Bankman-Fried and FTX co-founder Gary Wang. Following a court filing by BlockFi to reclaim the shares, the US Department of Justice seized the shares.
The DOJ and Robinhood have been working on a plan to facilitate the buyback, but nothing has been finalized. Despite rolling out the Robinhood Web3 Wallet to 1 million waitlisted users, Robinhood’s cryptocurrency-based transaction revenues fell 24% in the fourth quarter, resulting in a net loss of more than $1 billion.
Robinhood board gives nod to buy Sam Bankman-Fried’s $578M stake
