Robinhood’s stock trading shutdown outraged many on Thursday (Jan. 28), including Rep. Alexandria Ocasio-Cortez. The New York Congresswoman took to Twitter to say that she’d “support a hearing if necessary” to learn more about the legality of the stock trading platform’s restrictions.
“This is unacceptable,” AOC wrote. “We now need to know more about [Robinhood’s] decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit.”
“As a member of the Financial Services Cmte, I’d support a hearing if necessary,” she added.
As reported by REVOLT, Robinhood blocked users from purchasing GameStop and other shares on Thursday morning in response to the company’s stock boom on Wednesday night (Jan. 27). The platform describes itself as “democratizing finance for all,” which some users are now calling hypocritical in regard to their latest restriction.
“Either #Robinhood allows people to trade freely in the market or they will lose millions of users,” one person wrote on Twitter.
“Robinhood canceled stock orders on #gme #amc #NOK etc.... There should be a class action lawsuit. I thought we had a free market,” another complained. “So Wall Street is OK with me losing hundreds of dollars, so that rich investors can’t be called out on their risks.”
Ja Rule, a Robinhood user who had actually endorsed the company just hours prior, also fumed about the stock trading shut down.
“Yo this is a fucking CRIME what [Robinhood] is doing DO NOT SELL!!! HOLD THE LINE... WTF,” he tweeted. “They hedge fund guy shorted these stocks now we can’t buy them ppl start selling out of fear... we lose money they make money on the short... THIS IS A FUCKING CRIME!!!”
Along with GameStop, whose shares surged by over 400 percent on Wednesday, Robinhood also blocked users from buying stock in AMC, BlackBerry, Bed Bath and Beyond, Express, Koss, Naked Brand Corp. and Nokia.
See AOC’s tweet below.
This is unacceptable.— Alexandria Ocasio-Cortez (@AOC) January 28, 2021
We now need to know more about @RobinhoodApp’s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit.
As a member of the Financial Services Cmte, I’d support a hearing if necessary. https://t.co/4Qyrolgzyt