Breaking: Robinhood Buys Back $605.7 Million Stake from Sam Bankman-Fried in U.S. Government Deal

Robinhood Markets Inc. has finalized a share repurchase agreement worth $605.7 million with the United States Marshal Service, according to a company announcement made earlier today and CNBC report. The deal involves the acquisition of 55.3 million shares at $10.96 each, previously owned by Sam Bankman-Fried’s Emergent Fidelity Technologies. The transaction has received approval from the U.S. District Court for the Southern District of New York

Financial Implications

The $605.7 million deal represents a significant financial move for Robinhood, which had initially disclosed its intention to repurchase the stake in February of this year. The company’s board had authorized the pursuit of purchasing most or all of the stock at that time.

Market Response

Following the announcement, Robinhood’s stock (HOOD) experienced a 3.31% increase, closing at +0.36. This suggests that the market has largely responded positively to the news, although it remains to be seen how this will affect the company’s long-term valuation.

Legal Context

The approval from the U.S. District Court for the Southern District of New York adds a layer of legal validation to the transaction. It also closes a chapter on the involvement of Bankman-Fried’s Emergent Fidelity Technologies with Robinhood, following the former’s bankruptcy protection filing last year.


In May 2022, Bankman-Fried had acquired a 7.6% stake in Robinhood, amounting to over 56 million shares valued at nearly $482 million.

According to a Reuters report dated January 4, 2023, U.S. officials were in the process of seizing more than $400 million worth of Robinhood shares linked to FTX.

Then the shares in question were seized and transferred to the U.S. government’s custody following the bankruptcy protection filing by Bankman-Fried’s FTX and Emergent Fidelity Technologies last year.

Robinhood’s board had approved a plan to repurchase the stake, as confirmed in their fourth-quarter report published on February 8, 2023.

Image source: Shutterstock


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FTX Founder Sam Bankman-Fried Pleads for a Weekday Release Ahead of October Fraud Tria

The cryptocurrency world is abuzz with the latest developments surrounding FTX’s founder, Sam Bankman-Fried, commonly referred to as SBF. In a move that has captured the industry’s attention, SBF has made a formal plea for weekday release from his current confinement at the Metropolitan Detention Center in Brooklyn, New York. This request follows closely on the heels of a federal judge’s decision to revoke his substantial $250 million bail, a decision rooted in allegations of witness tampering.

The primary rationale behind SBF’s request hinges on the overwhelming volume of case-related documents. The defense team has been inundated with a massive trove of evidence, notably including three-quarters of a million pages of Slack communications. Given the constraints of his confinement, SBF argues that a thorough review of these documents is virtually impossible. With the clock ticking down to his fraud trial in October, the pressure to process this information is palpable.

The charges levied against the FTX founder are nothing short of grave. He is embroiled in allegations of orchestrating a sophisticated fraud scheme, purportedly allowing him unauthorized access to a staggering sum—billions of dollars from FTX customer accounts—for personal enrichment. Yet, in the face of these daunting accusations, SBF remains steadfast in proclaiming his innocence.

On the prosecution’s side, they’ve adopted a resolute stance. Their argument is clear-cut: if SBF intends to base his defense on the premise of legal advice he previously received, he must be transparent about the specifics of this advice and its origins. While they’ve extended an offer to furnish SBF with the requisite documents on hard drives, they’ve also highlighted the logistical challenges, noting the impossibility of storing all the information on a single laptop.

Further complicating matters, there were whispers of potentially relocating SBF to an upstate detention facility, one equipped with internet services. However, these murmurs were swiftly quashed by prison officials, leaving the defense’s request hanging in the balance.

As the global crypto community awaits further developments, this case underscores the intricate legal landscape of cryptocurrency regulations. The outcome of SBF’s trial, given the high-profile nature of the accused and the weight of the evidence, including Caroline Ellison‘s diaries, promises to have far-reaching implications for the industry.

Image source: Shutterstock


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Caroline Ellison’s Diaries: Crucial Evidence in FTX’s SBF Trial

Sam Bankman-Fried, known as SBF on Twitter and co-founder of the FTX cryptocurrency platform, is facing intense legal scrutiny. U.S. legal authorities have gathered a plethora of evidentiary documents against him. Among the most notable are the personal annotations and diaries of Caroline Ellison, the former CEO of Alameda Research.

On August 14, 2023, a legal motion was lodged against Samuel Bankman-Fried.

The U.S. legal team plans to leverage Caroline Ellison’s diaries and personal notes as key evidence in the upcoming criminal proceedings against SBF. These writings provide insights into various discussions between Ellison and SBF, touching upon topics like business apprehensions, capital raising efforts, Alameda’s hedging tactics, and contentious revelations about the hedge fund’s ties with FTX.

One piece of compelling evidence is an audio recording from a comprehensive meeting held on November 9, 2022. In this audio, Ellison seems to suggest that the decision to utilize FTX client funds to mitigate financial deficits in the faltering hedge fund was SBF’s idea. This crucial decision was taken shortly before FTX and Alameda declared bankruptcy.

Two other individuals, Gary Wang (FTX’s co-founder) and Nishad Singh (FTX’s past director of engineering), have confessed to fraud-related charges and are now collaborating with the legal authorities.

The defense team representing Bankman-Fried has voiced concerns about the evidence’s timely delivery. They believe that the delay in providing essential data, like the information on Wang’s computer and Ellison’s secure Telegram conversations, has affected their trial readiness.

The legal authorities have also highlighted other alleged wrongdoings by Bankman-Fried. These accusations encompass presenting false statements to a bank, bribing Chinese officials related to Alameda’s frozen accounts, and manipulating the value of FTX’s proprietary token, FTT.

An intriguing facet of this case is the past romantic involvement between Ellison and Bankman-Fried, which might influence their professional interactions.

The court hearing, scheduled to begin on October 2 in a Manhattan federal courtroom, is anticipated to garner significant attention due to its implications for the crypto sector. The impact of Ellison’s writings and audio recordings on the case’s outcome will be closely observed.

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Bankman-Fried’s Bail Conditions Extended

As a new development in the ongoing court action involving crypto millionaire Sam Bankman-Fried, his legal team has asked for a third extension on the execution of his updated bail terms. This information was revealed in a new legal filing. The petition was submitted to the court on April 19 in a file that was made in the Southern District of New York. The attorneys, Mark Cohen and Christian Everdell, have indicated that they have effectively enforced “all of the bail conditions set forth in the Order,” with the exception of one of the restrictions, which is monitoring the use of Bankman-Fried’s parents’ mobile phones. The attorneys noted difficulty in installing the requisite monitoring software, which is designed to snap a picture of the user “every five minutes.” They also highlighted issues in obtaining the appropriate user permissions.

Concerns over Bankman-Fried’s access to electronic devices have been voiced on previous occasions, thus this is not the first time the issue is being brought up. Prior to this, Judge Kaplan issued a cautionary statement stating that there was “probable cause” to assume that Bankman-Fried was engaged in an effort to tamper with a witness. On March 28, it was reported that Bankman-Fried’s parents had agreed to restrict their son’s access to their electronic devices and signed affidavits promising not to bring forbidden electronic equipment into their house. Additionally, it was stated that Bankman-Fried had limited his access to their gadgets.

Because of these concerns, Kaplan suggested on March 4 that Bankman-Fried be banned from using any video game platforms or devices, including cellphones, tablets, PCs, and anything else that enables chat and voice contact. According to the plan, Bankman-Fried’s only option for communication should be a “flip phone or other non-smartphone with either no internet capabilities or internet capabilities disabled.”

The continuation of the bail terms imposed on Bankman-Fried draws attention to the continuing judicial struggle that surrounds the billionaire’s suspected participation in an effort to tamper with a witness. While his legal team tries to install the required monitoring software on his parents’ mobile phones, it is now unknown whether or not Bankman-Fried will be able to abide by the court’s updated bail terms. This is the case even though Bankman-Fried is already out on bond.


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Binance Executive Accuses Former FTX CEO of Spreading Fake Rumors

Binance executive Patrick Hillmann recently took to Twitter to accuse former FTX CEO Sam Bankman-Fried, also known as SBF, of spreading “fake rumors” about Binance CEO Changpeng “CZ” Zhao. Hillmann claimed that Bankman-Fried used his influence to label Zhao as an “evil Chinese” in an attempt to perpetuate his alleged scams at FTX.

The public relationship between SBF and CZ had been often antagonistic, with the two exchanges having financial ties. However, Hillmann’s recent comments suggest that Bankman-Fried had taken things further than what was publicly visible. Hillmann also claimed that the denigration of CZ was the norm at FTX and had nothing to do with the decision to sell the worthless FTT on the company’s books.

The rivalry between FTX and Binance came to a head when CZ announced plans for Binance to liquidate its position in FTX Token (FTT) prior to FTX’s bankruptcy, hinting that Binance would consider purchasing the competitor. However, when the deal fell apart, and FTX filed for Chapter 11, the two industry heads traded barbs through social media. CZ called SBF a “fraudster,” and the former FTX CEO suggested that Zhao lied about the buyout discussions.

Despite the animosity between the two leaders, Zhao continues to lead Binance as CEO and regularly posts messages on social media. In contrast, Bankman-Fried faces 13 federal charges, including those related to bribery and wire fraud. As part of his bail conditions, he has only limited internet access.

Bankman-Fried’s alleged actions to denigrate CZ raise concerns about the role of social media in perpetuating rivalries and conflicts within the crypto industry. As crypto exchanges continue to grow in size and importance, it is crucial for their leaders to maintain a professional and respectful public image. Failure to do so could lead to reputational damage and undermine investor trust in the entire industry.

The rivalry between FTX and Binance is not unique in the crypto industry. The space is known for its intense competition, with companies vying for dominance in an emerging market with vast potential. However, the leaders of these companies must remember that they have a responsibility to act with integrity and professionalism in their public statements and behavior.

In conclusion, Hillmann’s accusations against Bankman-Fried highlight the need for greater scrutiny of the conduct of crypto industry leaders. As the industry continues to grow and evolve, it is important for regulators and investors to demand transparency and accountability from these companies and their leaders. Only by doing so can we ensure that the promise of crypto technology is fulfilled in a way that benefits everyone.


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FTX Founder Bail Agreement

The legal saga surrounding FTX founder Sam Bankman-Fried continues as new developments arise in his case. On March 27, Bankman-Fried’s lawyers reportedly reached a new bail agreement with US prosecutors that would allow him to remain at home while restricting his use of electronic devices and apps. The proposed agreement is still subject to approval by US District Judge Lewis Kaplan, who is overseeing Bankman-Fried’s case.

The proposed bail conditions would prohibit Bankman-Fried from using a smartphone with internet access and any apps other than voice calls and text messaging. He would also be required to use a basic laptop with limited functions and monitoring software to track user activity. The use of any other electronic communication devices is forbidden. Additionally, if there is “reasonable suspicion” of a violation, Bankman-Fried must submit his devices for a search.

The need for new bail conditions arose after Judge Kaplan expressed concerns about Bankman-Fried’s access to electronic devices and the internet. In a previous hearing, the judge attempted to ban Bankman-Fried from using any electronic devices and the internet as a condition of his bail. He argued that Bankman-Fried had a “garden of electronic devices” with internet access available at his parents’ California home. Judge Kaplan also alleged that there was “probable cause” to believe that Bankman-Fried was involved in attempted witness tampering.

To address these concerns, Bankman-Fried’s lawyers proposed the new bail agreement that would limit his access to electronic devices and the internet. The agreement also includes provisions for Bankman-Fried’s parents to restrict his access to their devices and sign affidavits agreeing not to bring prohibited electronic devices into their home.

Bankman-Fried faces criminal charges of stealing billions of dollars in FTX customer funds facilitated through Alameda Research and making large illegal political donations. He has pleaded not guilty to eight criminal counts, which could result in 115 years in prison if convicted. His trial is set for October 2, 2023.

In December 2022, Bankman-Fried was released on bail with conditions that included a $250 million bond, home detention, location monitoring, and the surrender of his passport. However, a few days later, industry investigators allegedly spotted transactions involving Bankman-Fried cashing out about $700,000 in a crypto exchange in Seychelles. Bankman-Fried has denied involvement in this or any other transactions allegedly tied to him or FTX.

Although Bankman-Fried has not been banned from Twitter, he has refrained from any social media activity for a while. His last visible activity on Twitter included a repost on Sullivan & Cromwell continuing to represent FTX debtors on January 20 and a “like” on a report that the firm billed $7.5 million for the first 19 days of FTX work.


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FTX Founder Faces New Charges, Including Alleged $40M Bribe

 The founder of the cryptocurrency exchange FTX, Sam Bankman-Fried, is facing a new 13-count indictment, including charges of bribery related to an alleged $40 million bribe to a Chinese government official. The charges stem from a court filing by United States attorney Damian Williams, which alleges that Bankman-Fried and other parties directed the transfer of at least approximately $40 million in cryptocurrency intended for the benefit of one or more Chinese government officials. The transaction was reportedly made in order to influence and induce Chinese officials to unfreeze cryptocurrency accounts at FTX’s affiliate firm, Alameda Research, which held over $1 billion worth of cryptocurrency.

The court filing alleges that Chinese law enforcement authorities froze certain Alameda accounts on “two of China’s largest crypto exchanges” in early 2021. Bankman-Fried was reportedly aware of the freeze and tried numerous methods to unfreeze the accounts, including attempting to transfer cryptocurrency to fraudulent accounts in an effort to circumvent China’s freeze orders. After months of failed attempts to unfreeze the accounts, Bankman-Fried allegedly directed a multi-million-dollar bribe to seek to unfreeze the accounts. After the accounts were unfrozen, Alameda reportedly used the unfrozen cryptocurrency to fund additional Alameda trading activity.

It is unclear which Chinese cryptocurrency exchanges Alameda was using in early 2021, as China officially banned crypto exchanges from providing services in the country back in 2017. However, the court filing alleges that Bankman-Fried was aware of the freeze and attempted to circumvent it through various means.

Bankman-Fried is already facing criminal charges related to the theft of billions of dollars in FTX customer funds facilitated through Alameda Research, as well as alleged illegal political donations. He has pleaded not guilty to eight criminal counts, which could result in 115 years in prison should he be convicted. Bankman-Fried’s trial is set for October 2, 2023.

FTX is a cryptocurrency exchange that was founded in 2019 by Bankman-Fried and Gary Wang. The exchange has quickly become one of the largest in the world, with a daily trading volume of over $10 billion. In addition to its exchange services, FTX also offers a range of other cryptocurrency-related products, including derivatives and tokenized stocks. Alameda Research is an affiliate firm of FTX that engages in quantitative trading and market making. The firm is known for its involvement in the DeFi (decentralized finance) space and has been an active participant in the development of the Solana blockchain.


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Crypto Entrepreneur Bail Package Revised

Sam Bankman-Fried is a well-known person in the realm of cryptocurrencies. He is also the co-founder and CEO of FTX, which is one of the most successful platforms for trading digital assets. On the other hand, he has just found himself in the middle of a legal dispute that has the potential to have significant repercussions for his future.

The legal actions at issue are connected to the collapse of FTX, which took place in 2018. Bankman-Fried and his colleagues were all listed as defendants in the case, which accused the corporation of a variety of illegal activities, including market manipulation and wash trading. While Bankman-Fried was originally able to stay out of prison, he was obliged to pay a bail bond in the amount of $250 million, which is thought to be the biggest bail bond ever posted in connection with a criminal prosecution in the United States.

Since then, Bankman-Fried has been free on bond, but the judge in charge of the case, Lewis Kaplan of the Southern District of New York, has some reservations about his usage of encrypted-messaging applications and virtual private network (VPN) services. Specifically, Bankman-Fried used Signal, a messaging service that provides end-to-end encryption, to contact former coworkers at FTX and Alameda. This prompted Kaplan to forbid him from using such apps and threaten to revoke his bail privileges if he acted out of order. Bankman-use Fried’s of Signal prompted Kaplan’s response.

Currently, the attorney for Bankman-Fried is making preparations to offer a revised bail package to the court. This new bail package may contain additional restrictions or a larger bond sum. It is not yet known how the lawsuit will turn out, but it is quite evident that Bankman-future, Fried’s in addition to the reputation of FTX and the cryptocurrency sector as a whole, is on the line.


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Crypto Entrepreneur Sam Bankman-Fried Faces Judge Over Use of Encrypted Messaging Apps While on Bail

The United States Department of Justice (DOJ) began looking into charges of market manipulation in August 2021 and opened an investigation against the cryptocurrency exchange FTX as well as the company’s founder Sam Bankman-Fried. Throughout the course of the inquiry, Bankman-Fried was detained and placed under custody; he faces various charges, one of which is that of aiding and abetting illicit trade. In order to stay out of prison, he agreed to pay a bail bond of $250 million, which at the time was the highest amount in the annals of United States history.

Concerns have been raised regarding whether or not Bankman-Fried would comply with the terms of his release as a result of the fact that he used encrypted chat applications while out on bail. The Department of Justice stated that his use of Signal and other apps constitutes a danger to the current investigation because it may impair the agency’s capacity to obtain possible evidence. The argument was based on the fact that the applications may prevent the government from accessing potential evidence.

In response to these concerns, the attorney for Bankman-Fried will soon be proposing a revised bail package to Judge Kaplan. This new bail package is anticipated to contain more stringent monitoring mechanisms to ensure that the defendant complies with the terms of his release. The defense attorney has contended that Bankman-usage Fried’s of encrypted messaging applications was not done with the intention of obstructing justice but rather with the intention of maintaining touch with former coworkers and employees.

The case sheds attention on the difficulties that law enforcement authorities have when attempting to investigate and prosecute crimes using cryptocurrencies, which sometimes include intricate technological hurdles and the use of encryption in order to maintain personal anonymity. It is possible that we will see further instances similar to this one in the future as the usage of cryptocurrencies continues to rise. This raises problems about how the legal system can properly govern and oversee new technologies like cryptocurrencies and blockchain.


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Judge Expresses Concerns Over Proposed Bail Conditions for Former FTX Founder

Sam Bankman-Fried is a well-known figure in the cryptocurrency industry, having founded FTX in 2019. However, he found himself in legal trouble in 2022, when he was arrested and charged with market manipulation, wire fraud, and other crimes related to his cryptocurrency trading activities.

Bankman-Fried has been released on bail pending trial, but the proposed conditions of his bail have come under scrutiny. Under the proposed conditions, Bankman-Fried would be subject to strict monitoring and restrictions on his electronic communications, including a ban on using encrypted messaging apps like Signal and Telegram.

While these restrictions may seem reasonable, U.S. District Judge Lewis Kaplan has expressed concerns over the effectiveness of such measures. During a hearing on March 10, 2023, Kaplan suggested that Bankman-Fried was a highly inventive individual who could find ways to evade the restrictions and communicate with others electronically in covert ways.

Kaplan’s concerns are not unfounded. Bankman-Fried is known for his technical expertise and is regarded as one of the brightest minds in the cryptocurrency industry. His innovative approach to trading has helped FTX become one of the fastest-growing cryptocurrency exchanges in the world, and he has become a prominent figure in the industry.

Given Bankman-Fried’s technical abilities and knowledge of the cryptocurrency landscape, it is possible that he could find ways to evade the proposed restrictions on his electronic communications. This could potentially put him in violation of his bail conditions and could lead to further legal trouble.

The case against Bankman-Fried is still ongoing, and it remains to be seen what the final outcome will be. However, the concerns raised by U.S. District Judge Lewis Kaplan highlight the challenges of monitoring and restricting the activities of highly inventive individuals like Bankman-Fried in the digital age. As technology continues to evolve, it will become increasingly difficult to enforce traditional legal restrictions on electronic communication and other activities.


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