FTX, the popular crypto exchange, on Monday denied a report that the company is looking to buy Robinhood, a traditional financial brokerage platform. FTX’s spokesperson told a news website that there are no active M&A conversations between the two companies.
Bloomberg had earlier reported that Sam Bankman-Fried, the founder and CEO of FTX, was involved in the conversation to acquire the commission-free trading platform. Robinhood’s stock price increased by 15% in response to acquisition reports, but it has since dropped to below $9 in after-hours trading.
Bankman-Fried previously purchased a 7.6% stake in Robinhood, according to a May SEC filing, which had boosted the trading app’s share by some 30%.