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Robinhood crypto trading app faces legal action – Cryptocurrencies

Robinhood trading justice

Will the state sheriff finally succeed in taking Robin Hood skin? Massachusetts regulators want to take the Robinhood crypto application to court.

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Robinhood: Was the Game Worth the Candle?

RegulatorsState of Massachusetts are considering taking legal action against the crypto trading app Robinhood, for non-compliance with state laws. However, the offense is said to have no direct connection with cryptocurrencies.

According to an article in Wall Street Journal December 16, 2020, Robinhood allegedly carried out illegal marketing actions targeting inexperienced investors.

According to a 20-page administrative document reviewed by the WSJ, the legal branch of Massachusetts Securitites Division indicates that Robinhood exposed investors to unnecessary trading risks, far from the standards in force. Authorities planned to file a complaint on December 17, 2020.

According to WSJ, the secretary’s office Commonwealth of Massachussetts, William galvin, would be at the origin of this complaint. Galvin indicated that Robinhood presented itself as a game that was easy to win.

A suicide that will cause the death of Robinhood?

A spokesperson for Robinhood had indicated that the company had not yet heard of the complaint. He added that the app provided a new generation of access to financial markets.

He also said that the platform is committed to operating with the utmost respect for all applicable laws and regulations.

Robinhood has had a difficult year. In June 2020, Forbes revealed the suicide ofAlex kearns, a 20-year-old boy who discovered a negative balance of $ 730,000 on his app Robinhood.

Those responsible for Robinhood then issued a statement in which the company pledged to strengthen the eligibility criteria and educational resources available to customers.

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The platform also faced multiple technical failures that would have resulted in losses for traders.

The promise of becoming a millionaire easily and quickly thanks to crypto-trading: should we throw stone at the person who promises, or those who agree to play the game of their own accord – we did not put a gun to their temple ? Now it’s up to Robinhood’s lawyers to find the right angle and the right force, to choose the right bow and the right arrow, to hit the middle of the target and get Robinhood out of this legal mess.

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