A protester towards Robnhood and it is CEO holds indicators in San Francisco.Lupe Mejia | CNBCSome Robinhood merchants who cannot get in contact wi
A protester towards Robnhood and it is CEO holds indicators in San Francisco.
Lupe Mejia | CNBC
Some Robinhood merchants who cannot get in contact with customer support try one other tactic: displaying up at its entrance door.
A handful of Robinhood’s shoppers have pushed to the start-up’s headquarters in California, demanding to talk to a consultant and in some circumstances, vandalizing the property, based on police stories.
A complete of ten stories from January 28 to February 9 obtained by CNBC element frustration with the buying and selling start-up. Some prospects tried to elucidate account points to safety guards exterior the one-story, nondescript constructing within the Bay Space suburb, and got a paper kind to fill out. There have been no Robinhood-related police stories previous to that date this 12 months, the division mentioned.
A Menlo Park police spokesperson mentioned the incidents embody as many as 15 individuals protesting exterior of the workplace, and a male suspect throwing a t-shirt at a safety guard. One other suspect sawed right into a sculpture on Robinhood’s property. A 3rd man threw animal feces on the entrance door, based on police.
Robinhood got here below fireplace from customers and lawmakers for proscribing the buy-side of some trades in late January. Some accused Robinhood of defending hedge funds that had shorted shares akin to GameStop. Robinhood mentioned it didn’t make these selections primarily based on the curiosity of market makers or hedge funds, and wanted to restrict trades to elevated capital necessities.
Robinhood declined to touch upon the police stories and customer support complaints.
2,400 miles to Robinhood
Forty-three-year outdated Rayz Rayl mentioned he had been utilizing the free-trading app for seven years, and advisable Robinhood to mates earlier than late January. The skilled poker participant advised CNBC that he misplaced $50,000 buying and selling Nokia — considered one of a number of shares that had been restricted on the platform as a consequence of volatility.
After failed makes an attempt to contact Robinhood’s customer support, he determined to drive greater than 2,400 miles from his house in Sellersburg, Indiana final Thursday to Robinhood’s headquarters to shut down his account.
“I’ve cash in my Robinhood account that I would like for dwelling bills” Rayl, who has three children, mentioned in an interview exterior of Robinhood’s headquarters. “My cash is at the moment held hostage by Robinhood, I can not get it out.”
Rayl mentioned he was locked out for greater than 10 days. After his interview, and a request for remark to Robinhood by CNBC, he was contacted by customer support and capable of entry his account.
CNBC witnessed one other Robinhood consumer kicking and knocking on the entrance door of Robinhood, claiming the start-up had “$2 million of my cash on maintain,” and asking to “take my account quantity down.” The person declined to talk about his criticism.
Within the weeks since, greater than two dozen lawsuits have been filed towards Robinhood from shoppers looking for damages. One other lawsuit introduced towards the buying and selling app this week is from the household of Alex Kearns – a 20-year-old who dedicated suicide final 12 months after mistakenly pondering he owed greater than $730,000 after buying and selling choices.
To make sure, the Menlo Park incidents solely symbolize a handful of Robinhood’s 13 million prospects. Regardless of the backlash on-line and in Capitol Hill, the start-up appeared so as to add document accounts within the final week of January. JMP Securities estimates that Robinhood noticed 600,000 cellular downloads in the course of the week of GameStop buying and selling.
Robinhood’s consumer insurance policies define potential for losses, and restrictions on buying and selling. Customers agree that “Robinhood could, in its discretion, prohibit or limit the buying and selling of securities, or the substitution of securities, in any of My Accounts.”
Rayl mentioned he knew the chance of shedding cash when he signed up for Robinhood, and has misplaced as a lot as $20,000 in a single day in poker. To Rayl, his lack of ability to purchase sure shares made this stand out from different losses. He mentioned Robinhood limiting shoppers’ trades amounted to “pulling the rug out from below” shoppers.
For now, Rayz is taking hiatus from the inventory market.
“I do not belief Wall Road proper now — I am shifting all the cash to money, and taking a break,” Rayz mentioned. “I do not know if I am going to ever return to day buying and selling after this occurred.”