Crypto exchange FTX is reportedly looking into buying Robinhood

Illustration by Alex Castro / The Verge

According to a report, FTX is considering an acquisition. According to sources close to the situation, FTX has yet to make an offer.

Sam Bankman- Fried, CEO of FTX stated that the company isn't in the process of trying to acquire a company. Bankman-Fried said in a statement that they were excited about the business prospects of the company. There are no active merger and acquisition conversations with the company. The Verge reached out to FTX, but they didn't reply immediately. The company didn't comment on the story.

According to a 13D Securities and Exchange Commission filing, Bankman- Fried disclosed his stake in the company in May of this year. When someone acquires more than 5% of a company, this type of filing is used to signal a possible takeover. Half of the company's voting power is held by the CEO and CCO of the company. There was news about the potential acquisition.

As cryptocurrencies take a tumble, Bankman-Fried and his FTX exchange have been crucial in helping struggling companies. FTX gave $250 million in revolving credit to BlockFi, and Bankman-Fried's Alameda Research gave $500 million to VoyagerDigital.

In its most recent earnings report, the company said that economic uncertainty has affected its business as well, with its monthly active users decreasing by 10 percent. The revenue fell from $522 million to $299 million.

Robinhood has become a popular trading platform for young investors thanks to its commission-free trades and other features. It launched its own coin wallet earlier this month and has been trying to expand its offerings. After riding out the meme stock wave, the company went public. Since then, the company's market valuation has lost about three-quarters of it's value.