Retail broker Robinhood said it is in talks with the US Department of Justice to buy the $575mn worth of its shares that have become a hotly-contested asset in the collapse of crypto exchange FTX.
FTX founder Sam Bankman-Fried bought 55mn shares, worth 7.6 per cent of the broker, in 2022 through his Emergent Fidelity Technologies vehicle. However the shares’ ownership has been disputed since his crypto empire filed for bankruptcy in November.
Robinhood is looking to buy the stake at market price from the justice department, which seized the shares in January as potential proceeds of criminal activity.
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