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Feds Seized Robinhood CEO’s Phone In GameStop Probe

Investigators have seized the phone of Robinhood CEO Vlad Tenev as they continued their probe into trading that led to a trading halt in shares of iconic games store GameStop and cinema group AMC.

Robinhood faces dozens of proposed class-action lawsuits, as well as examinations and investigations by regulators after it restricted the purchase of the meme stocks in January.

Robinhood said it was because the company did not have the capital required by regulators to cover the requested trading volume.

It ultimately tapped US$500 million through its credit lines and raised $1 billion overnight to lift the trading restrictions.

Robinhood said that the incident has resulted in negative media attention and widespread customer dissatisfaction and numerous expensive litigation battles.

Wall St regulators have already fined Robinhood a record $70 million for systemwide outages and misleading trading practices.

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