Robinhood CEO Vlad Tenev’s phone was seized by federal attorneys in one of the stock-trading app company’s 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. Tenev’s cell phone.” Here, “USAO” refers to the United States Attorney’s Office for the Northern District of California, which was investigating Robinhood’s restrictions on trading during the meme stock flurry around GameStop and other stocks early this year.
Yesterday: Robinhood fined $70 million for harming millions of investors.
Today: Robinhood reports that 34% of its crypto revenue comes from Dogecoin trading.
I am starting to think that the pattern day trader Rules at brokerages implemented by the SEC is actually not to protect the small investor but to ensure that small investors STAY SMALL.
One could also make the assertion that they are inherently racist since the reality is that there are many poor ethnic minorities that won’t be allowed to do simple small trades based on the fact that they don’t have $25,000 to start out with.
Anyone have any more insight into these rules?