Feds seized Robinhood CEOs phone as part of GameStop trading probe

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▤ Summary

Robinhood CEO Vlad Tenevs phone was seized by federal attorneys in one of the stock-trading app companys many legal battles, it revealed in its IPO filing on Thursday. In a section outlining legal risks from investigations and subpoenas, the company noted that "a related search warrant was executed by the USAO to obtain Mr. Tenevs cell phone." Robinhood restricted the purchase of "meme stocks" such as GameStop and AMC in January because the company did not have the capital required by regulators to cover the requested trading volume. But due to the preliminary nature of all of these proceedings, the company wrote, it is "unable at this time to estimate the likelihood or magnitude of any possible losses related to these matters." The IPO filing comes one day after news that Robinhood would have to pay a fine of $70 million to FINRA for its systemwide outages and misleading communication and trading practices.

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Fintech & Banking
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