Robinhood has agreed to a buyback of approximately $600 million worth of Seized Sam Bankman-Fried’s (SIBBF) stake in the company from the US Marshal Service. The buyback will allow the US Marshal Service to recoup its losses after seizing SIBBF’s stake in Robinhood as part of the controversial trading investigation into SIBBF and a related civil forfeiture proceeding.
The settlement follows Robinhood’s announcement last month that it had entered into an agreement to repurchase SIBBF’s stake for an undisclosed amount. The stake, which is valued at approximately $4 billion, had been seized after regulators alleged that SIBBF had illegally profited from private information obtained through his role as chief executive of Robinhood.
The $600 million buyback marks the latest step in Robinhood’s efforts to clear itself of legal difficulties stemming from the SIBBF investigation. In particular, Robinhood has already settled with the Securities and Exchange Commission and the Department of Justice. And the company is still in the process of negotiating with a number of states attorneys general who allege that Robinhood violated consumer protection laws.