Robinhood CEO May Testify Before US House Committee Over GameStop Allegations

Vlad Tenev will likely appear before a U.S. virtual hearing as lawmakers investigate the firm's recent trading restrictions, a Politico report says.

Feb 2, 2021 at 9:30 a.m. UTC
Updated Sep 14, 2021 at 11:04 a.m. UTC

Robinhood CEO Vlad Tenev is expected to testify before the U.S. House Financial Services Committee on Feb. 18 following accusations the trading platform worked with large hedge funds to halt trading on GameStop (GME) stock, among others.

According to a report by Politco on Monday, Tenev will likely appear before a virtual hearing titled "Game Stopped? Who Wins and Loses When Short Sellers, Social Media and Retail Investors Collide."

The hearing, which kicks off at around 10 a.m. ET (17:00 UTC), is being chaired by Rep. Maxine Waters (D-Calif.), who has already voiced her concerns over Robinhood's actions.

"I am concerned about whether or not Robinhood restricted the trading because there was collusion between Robinhood and some of the hedge funds that were involved with this,” Waters said on MSNBC, as cited by Politico.

Last Thursday, Robinhood limited the ability of traders to buy GameStop and other stocks targeted by Reddit group WallStreetBets, which worked to cause financial harm to large hedge funds by causing a short squeeze on the hedge funds betting against the stocks.

Tenev said his platform acted to protect itself and customers during a tumultuous trading period where demand outstripped its ability to facilitate obligatory deposits to clearinghouses.

The CEO denied Robinhood was "directed by a market maker or any other market participant," saying the decision was based on a “technical and operational” one."

The comments have drawn the ire of retail investors now seeking compensation from Robinhood.

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