Robinhood successfully reclaims $606 million in disputed shares linked to FTX’s Bankman-Fried, resolving legal complexities and boosting stock performance.Robinhood has successfully reacquired 55.3 million shares from the U.S. Marshal Service in a deal amounting to $605.7 million. These shares, previously under the control of FTX founder Sam Bankman-Fried, had become a contentious issue in a broader legal dispute. The buyback, priced at $10.96 per share, eliminates some uncertainties that plagued Robinhood’s stock performance.The controversial FTX and Bankman-Fried sharesEmergent Fidelity Technologies Ltd. was central to this corporate saga, an entity now bankrupt but once managed by Bankman-Fried. It had acquired a 7% stake in Robinhood, and the company’s board had earlier greenlit a plan to reclaim most of this stake.Caught in a legal wrangle, these shares had invited claims from multiple high-profile entities, including FTX and bankrupt crypto lender BlockFi Inc. BlockFi contended these shares were pledged as loan collateral by Emergent Fidelity. The Department of Justice had urged the parties to refrain from litigating this issue in bankruptcy courts.You might also like: Robinhood identified as the third biggest Bitcoin whale with $3b wallet With this repurchase, Robinhood saw a 2.6% surge in its stock, trading at $11.8 at the moment of writtingWall Street analysts, led by Devin Ryan at JMP, observed that the uncertainty surrounding this significant number of shares had adversely impacted Robinhood’s short-term stock outlook.Accusations and legal troubles continue for SBFSam Bankman-Fried, the man at the center of this intricate web, continues to be in house arrest until his trial in Brooklyn set for October 2nd. He has pleaded not guilty to all fraud charges through FTX and Alameda Research and saw his bail revoked earlier this month. So, investors are very cautious with any financial institutions or instruments linked to the scrutinized founder. The stock buyback from Robinhood is a pivotal moment in the company’s strategy to reclaim investor trust. As Robinhood navigates a legal and regulatory labyrinth, this development underscores its dedication to solidifying its financial footing and steering clear of controversies involving names like FTX and Bankman-Fried.

Bitwise Asset Management has withdrawn its application for a Bitcoin and Ethereum Market Cap Weight Strategy ETF.Bitwise Asset Management has withdrawn its application for a Bitcoin (BTC) and Ether (ETH) Market Cap Weight Strategy exchange-traded fund. It was initially filed with the U.S. Securities and Exchange Commission on Aug. 3. This decision follows a period of increased optimism in the crypto market after Grayscale secured approval for its own ETF from the SEC.Bitwise’s Chief Investment Officer, Matt Hougan, had expressed support for the SEC’s approval of crypto ETFs in a previous interview with Bloomberg. The planned ETF was designed to invest in futures contracts for either Bitcoin or Ethereum, guided by their respective market capitalizations. In addition, Bitwise was concurrently collaborating with ProShares to initiate another ETF.The company’s official statement on the withdrawal noted,“The Trust no longer intends to seek effectiveness of the Fund and no securities of the Fund were sold, or will be sold, pursuant to the above-mentioned Post-Effective Amendment to the Trust’s Registration Statement.”This move comes amid a series of delays by the SEC concerning Bitcoin ETF applications from various other financial firms, including WisdomTree, Invesco Galaxy, Valkyrie, VanEck, BlackRock, and Fidelity.You might also like:Grayscale’s Bitcoin ETF optimism bolsters crypto market sentimentAccording to the SEC, the regulatory body has extended its review period for a range of spot Bitcoin ETF applications. It is not expected to finalize its decisions until at least mid-October. Further delays could push this timeline into 2024.Bitwise has had prior engagements with the SEC, including a 2019 application for a Bitcoin-backed ETF that aimed to track the Bitwise Bitcoin Total Return Index. The index was proposed to offer a broad snapshot of Bitcoin’s value, aggregating data from multiple crypto exchanges. Third-party custodians were planned to hold the Bitcoin to add a layer of physical security.This withdrawal is not Bitwise’s first; the firm had previously filed and then rapidly withdrawn an application for an Ethereum Strategy ETF earlier this year.