Sam Bankman-Fried’s Robinhood stake is tied up in FTX bankruptcy proceedings, CEO Tenev says

Robinhood Markets, Inc. CEO and co-founder Vlad Tenev and co-founder Baiju Bhatt pose with Robinhood signage on Wall Street after the company’s IPO in New York City, U.S., July 29, 2021.

Sam Bankman- Fried, the disgraced former CEO of FTX, has a 7.6% stake in the trading app, but it is not clear what he will do with it.

Tenev said that he was not surprised that it was one of the more valuable assets on the balance sheet. We don't have much information that you don't have. It is going to be locked up in bankruptcy proceedings for a while. We are just watching how that plays out.

Bankman-Fried took a 7.6% stake in Robinhood in the belief that it was an attractive investment. The biggest liquid line item on his balance sheet was Bankman- Fried's stake in Robinhood.

The company's stock price has fallen 45% this year to under $10 per share.

A pattern of foreign companies creating U.S. subsidiaries hasn't been scrutinized to the same degree. FTX became a country in the Caribbean.

If you are operating a business that has subsidiaries that serve American customers, the scrutiny should be the same if not higher.

Despite the FTX collapse, the CEO is still bullish on Cryptocurrencies.

There are still opportunities with the digital currency. Customers in the US have been looking for safer options.

Users of the trading app will get a 1% contribution match on their retirement accounts.