Robinhood Markets, Inc. CEO and co-founder Vlad Tenev and co-founder Baiju Bhatt pose with Robinhood signage on Wall Road after the corporate’s IPO in New York Metropolis, U.S., July 29, 2021.
Andrew Kelly | Reuters
Robinhood Markets CEO Vlad Tenev stated Tuesday he is unclear what Sam Bankman-Fried, the disgraced former CEO of FTX, goes to do together with his 7.6% stake in his buying and selling app.
“I am not stunned that it is one of many extra helpful property they’ve on their steadiness sheet as a result of it’s public firm’s inventory,” Tenev stated on CNBC’s “Squawk Field.” “We do not have lots of data that you simply guys do not have. We’re simply watching this unfold and … it’ll be locked up in chapter proceedings, almost definitely for a while. And so we’re simply form of seeing how that performs out.”
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In Could, Bankman-Fried took a 7.6% stake in Robinhood value $648 million within the perception that the shares “signify a gorgeous funding.” As FTX spiraled out of business, Bankman-Fried’s Robinhood stake turned the largest liquid line merchandise on his steadiness sheet that he may doubtlessly promote.
Shares of Robinhood have fallen greater than 45% this yr to below $10 apiece amid shrinking income and declining consumer numbers.
Tenev stated he sees a sample of international firms creating U.S. subsidiaries, which have not been scrutinized to the identical diploma. FTX turned a Bahamas entity in July 2021.
“I believe that is one thing that regulators ought to check out and make it possible for the scrutiny is identical if not increased, in the event you’re offshore and working a enterprise that has subsidiaries that serve American clients,” Tenev stated.
The Robinhood CEO stated he is nonetheless bullish on cryptocurrencies regardless of the FTX collapse.
“We nonetheless see alternatives with crypto. I believe specifically clients have been in search of regulated safer choices, notably clients within the U.S.,” Tenev stated.
The buying and selling app introduced Tuesday it is rolling out retirement accounts to its customers, with a 1% contribution match.