Robinhood and Reddit CEOs to Testify at GameStop Federal Hearing – tech2.org

Robinhood and Reddit CEOs to Testify at GameStop Federal Hearing


Illustration for article titled Robinhood and Reddit CEOs to Testify at GameStop Federal Hearing

Photo: Olivier Douliery (fake images)

The House Financial Services Committee will hold a virtual hearing on Feb. 18 as part of his research on the coordinated effort by the Reddit stock trading community to push GameStop’s stock price as a huge middle finger for hedge fund managers.

The witness list includes some of the key players involved in the The GameStonks saga, which includes Robinhood co-CEO Vlad Tenev, Reddit CEO and co-founder Steve Huffman, Melvin Capital CEO Gabriel Plotkin, and Keith Gill (aka Roaring Kitty), a Reddit user and YouTuber who reportedly helped start the shopping frenzy, according to a press release from friday from the Chairperson of the House Financial Services Committee, Rep. Maxine Waters. Additional witnesses can still be named, the press release says.

Last month, small investors from the WallStreetBets subreddit came together to buy GameStop shares in part to bankrupt hedge funds that made significant bets against the embattled gaming retailer. His plan worked and the value of GameStop shares fired for at least 500% while short sellers like Melvin bled billions in estimated losses. According to the New York TimesGill played a central role in getting the campaign off the ground by frequently tweeting and making videos about his investment in GameStop stock. In a moment, hThis original investment of $ 53,000 in 2019 was supposedly worth approximately $ 48 million.

Gill and his fellow Reddit users flocked to the free online trading platform Robinhood to buy GameStop stock before setting their sights on other struggling companies favored by WallStreetBets. Robinhood is looking down several litigation and accusations of stock market manipulation after it abruptly blocked users from buying so-called “YOLO shares” during the height of the social media-driven stock market frenzy.

In january, Waters said the House hearing “will examine recent activity around GameStop (GME) shares and other affected stocks with a focus on short selling, online trading platforms, gamification and their systemic impact. in our capital markets and retail investors. “

The Senate Banking Commission has also announced plans to hold a hearing “on the current state of the stock market” in the wake of the GameStonks saga. You can watch the House audience live on your website starting at 12 p.m. ET on Feb. 18.

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