Financial ties between Robinhood and funds shorting GME fall under scrutiny
The trading platform's decision to shut Redditors out from buying GameStop continues to raise eyebrows. The connections between trading app Robinhood, Citadel hedge fund, Melvin Capital, and GameStop are becoming clearer as the Internet burns with outrage over allegations of market manipulation.Melvin Capital was one of the biggest players short-selling GameStop stock, or GME. When a number of Redditors — and gamers — on the r/Wallstreetbets subreddit pushed back against institutions trying to financially destroy the popular brick and mortar video game store, the price of GameStop shares....
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It's been more than a year, but investors continue to make allegations against Robinhood following the January 2021 controversy around trading GameStop and AMC stocks. Cryptocurrency and stock trading platform Robinhood will allegedly face allegations of market manipulation as part of a class-action lawsuit brought by investors in “meme stocks” from nine different companies during a January 2021 rally.According to a Thursday report from Reuters, United States District Court Judge Cecilia Altonaga of the Southern District of Florida ruled that investors in GameStop, AMC and seven other....
Newly surfaced reports revealed that some hedge funds are now shorting Tether USDT. A Monday report from the Wall Street Journal (WSJ) stated several opened short positions on USDT. According to the report, a leading crypto brokerage, Genesis Global Trading Inc., held some notional values worth hundreds of millions for USDT shorting. The firm is […]
The price of GME has fallen almost 90% since lawmakers first called for a hearing. Executives from companies involved in the recent controversy between hedge funds and retail investors from Reddit may be testifying at a House Financial Services Committee hearing next week.According to a Reuters report, two people familiar with the matter said executives from trading app Robinhood, investment manager Melvin Capital, and hedge fund Citadel are expected to testify in a congressional hearing scheduled for Feb. 18. Bloomberg reported that Citadel founder Ken Griffin is likely to be in....
Some Republican members of the House Financial Services Committee want to look into Reddit’s ties to Chinese tech conglomerate Tencent and Robinhood rival Moomoo.
Robinhood Markets Inc., the American financial services company headquartered in Menlo Park, California, has seen its initial public offering (IPO) delayed by the U.S. Securities and Exchange Commission (SEC). According to a report citing “people familiar with the matter” the SEC is questioning Robinhood’s cryptocurrency business. SEC Questions Robinhood’s Crypto Dealings, IPO Delayed Robinhood was supposed to be having an initial public offering this month but according to a report from Bloomberg, the listing has been slowed by the SEC. The report cites a few....