But there may be hope on the horizon.
Bankman-Fried, who runs startup FTX, a Bahamas-based cryptocurrency exchange, said in the filing that he bought the Robinhood stock because he believes it “represents an attractive investment.” He added that his stake is for a passive investment and that he “does not currently have any intention of taking any action to change or influence control” of Robinhood.
FTX has taken the world of cryptocurrencies by storm attracting more than a million users
since launching in 2019, so having its founder as a strategic investor in Robinhood can add credibility to a brokerage, not to mention a sponsor with a lot of money at their disposal.
Recently private company FTX raised new funding that values the company at $32 billion.
According to data tracked by Forbes, Bankman-Fried, who is also the founder of cryptocurrency trading firm Alameda Research, worth $21.2 billion.
FTX did not comment further on Bankman-Fried’s stake in Robinhood. On Thursday, Robinhood released a statement about its verified Robinhood PR team on Twitter
stating that “we are redoubling our efforts to build a multi-generational company where customers can create wealth for their generations.”
“Of course, we also believe that this is an attractive investment. We have the best customer base, we introduce great new products and we have a team that can deliver them. Our journey is just beginning,” Robinhood added.
Bankman-Fried’s investment could help Robinhood get back on track. Robinhood, along with competitor Coinbase, has struggled this year due to volatility in the financial markets.
, which fell earlier this week after a lousy earnings report and a weak outlook, rose in tandem with Robinhood on Friday. Coinbase shares are up about 25%. But its shares are still down 30% this week and more than 70% this year.