Online brokerage Robinhood announced on Wednesday that its board of directors had approved a buyback of the 7.6% stake in the company Sam Bankman-Fried, founder of the now-bankrupt cryptocurrency exchange FTX, had purchased in May 2022.
The shares are owned by an entity called Emergent Fidelity Technologies, a holding company Bankman-Fried and former FTX executive Gary Wong used to purchase a stake in the brokerage, and are currently worth more than $550 million. Emergent, which filed for bankruptcy last Friday, owns 55 million shares of Robinhood, per the board’s announcement.
