Shares of Robinhood rose despite being involved in legal proceedings due to ties to FTX.
The US Department of Justice is preparing to seize Robinhood shares of Sam Bankman-Fried.
Robinhood Shares Rise
Stocks of brokerage platform Robinhood closed the day up 3.47% despite increasing speculation.
The Justice Department is preparing to seize $465 million in shares, which has sparked controversy between SBF, BlockFi, and FTX creditor Yonathan Ben Shimon.
DOJ attorney Seth Shapiro told Judge John Dorsey that he was not convinced the shares were tied to the bankruptcy process. This could mean bad for FTX creditors.
It was noted that Sam Bankman-Fried bought 7.42 percent of Robinhood shares through one of his own companies, Emergent Fidelity Technologies.
Considering that the US will confiscate 56 million Robinhood shares, there are signs that this will not affect investors.
The brokerage house is getting more and more involved in the cryptocurrency industry. The company has become one of the most talked about companies in the crypto industry, especially after adding DOGE support.