Some Robinhood traders count their winnings, the Wall Street Journal reports on a darker side to the trading app.
Alex Kearns, a 20 year-old student, took his life after initiating a trade for which he thought the loss was capped at $10k. One weekend last June, the WSJ says Robinhood emailed Alex to say that he needed to deposit $178k in his account to rectify a negative balance of $730k. Alex tried to get in contact with Robinhood three times overnight, but received only automated email responses that omitted to say that the $730k balance referred to only one leg of his trade which would be offset by later ones. He wrote a note to his family and killed himself.
The family have filed a lawsuit against Robinhood, claiming that it by “reckless conduct directly and proximately caused the death of one of its victims.”
Sarah Butcher – Read more on efinancialcareers.com