Vlad Tenev details the improvements made to his trading platform during the House trial.
Robinhood CEO Vlad Tenev apologized to the family of Alex Kearns, the young customer who committed suicide last year after experiencing catastrophic trade problems during part of his congressional testimony Thursday about the GameStop trend. .
“I’m sorry for Mr Kearns ‘family for your loss. Mr Kearns’ passing was very worrying for me and the whole company,” Tenev said in response to a question. The firm had earlier released a statement on his departure.
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The Kearns family is suing Robinhood, stating that the 20-year-old student at the University of Nebraska-Lincoln wrongly thought he owed more than $ 700,000 for a risky option.
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“Robinhood not only allowed Alex to open the account, but when Alex was a first-year student later that year, it allowed him to trade options. Those options proved that he could become obligated to make more than $ 700,000. to pay securities., an amount he was unable to pay.Worse, Robinhood provided almost no investment guidelines, and customer service was virtually non-existent, consisting of automated email responses without any human contact or interaction “according to the complaint reviewed by FOX Business.
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Last month, it was filed in the California State Court in Santa Clara County, claiming unspecified damages on behalf of Kearns’ parents and sister for the unlawful death, negligent infliction of emotional distress and unfair business practices.
Tenev was also concerned about what the firm had done to prevent similar decay.
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‘There have been several improvements, one that has given us the ability to direct exercise, as well as exercise options in the app. We provided clarity on the display of purchasing power, specifically negative purchasing power in situations where one leg of a complex multi-leg option transaction would be allocated. We also added specialists in education options and we also added customer support on the phone for cases in acute options, ”he explained.
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Robinhood and other businesses were called out on social media during times of extreme trade over long waiting times for customers’ service providers, including the peak of volatility in the pandemic in March last year, as well as last month during the GameStop chaos.
[Editor’s note: This story discusses suicide. If you or someone you know is having thoughts of suicide, please contact the National Suicide Prevention Lifeline at 1-800-273-TALK (8255)]