Robinhood Shares up 3.4% Despite Links to Bankrupt FTX

1 year ago 111

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Godfrey Benjamin

Shares of brokerage steadfast Robinhood up 3.4% amid its indictment with FTX

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Commission-free brokerage platform Robinhood Markets Inc saw its investors unfazed arsenic its shares closed up 3.47% connected Wednesday contempt being indicted successful the ongoing ineligible brawl involving the bankrupt FTX empire. As reported by Fox Business, the United States Department of Justice (DOJ) is acceptable to prehend the sum of $465 cardinal successful Robinhood shares allegedly belonging to Sam Bankman-Fried, bankrupt crypto lender BlockFi and FTX creditor Yonathan Ben Shimon.

This determination comes as 1 of the large stumbling blocks to FTX creditors arsenic DOJ lawyer Judge Seth Shapiro told Judge John Dorsey that they stay unconvinced that the shares are tied to the exchange's bankruptcy estate.

Sam Bankman-Fried reportedly bought a 7.42% involvement successful Robinhood, an concern it made done 1 of his companies, Emergent Fidelity Technologies Inc. The acquisition was financed done a indebtedness helium secured from Alameda Research, the trading steadfast helium allegedly utilized to siphon funds from FTX customers.

With the 56 cardinal shares of Robinhood present acceptable to beryllium seized by U.S. prosecutors, determination is simply a awesome that the trading firm's investors volition not beryllium impacted contempt the immense sum being taken retired of circulation.

Further strain connected Robinhood's crypto ties

It is not uncommon to find salient mainstream brokerage platforms similar Robinhood venturing into the crypto ecosystem, arsenic galore usage the emerging manufacture arsenic a means to summation further marketplace shares.

At this time, the crypto ecosystem is not astatine its champion amid an excruciating crypto wintertime that has lasted for adjacent to a year. Despite these evident marketplace strains, Robinhood has been making targeted investments into immoderate of the astir traded integer currencies, including Dogecoin (DOGE), per an earlier report by U.Today.

It remains unclear however the existent FTX indictment volition impact Robinhood successful the agelong term, but successful the meantime, the steadfast maintains its outlook arsenic a large hub for commission-free crypto trading.

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