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- Barstool Sports founder Dave Portnoy said he lost $ 700,000 on “memes stocks” like GameStop.
- Portnoy tweeted that the CEO of the Robinhood trading app “stole it from me and should be in jail.”
- Portnoy’s tweet comes as the stock market continues to experience a frenzy triggered by a group of Redditors.
- Visit the Business Insider homepage for more stories.
Barstool Sports founder Dave Portnoy said he lost around $ 700,000 on “meme stocks” like GameStop.
Portnoy tweeted on Tuesday that he has officially sold all of the stocks he bought and berated the Robinhood trading platform and its CEO, Vlad Tenev, for allowing users to buy volatile stocks in the first place.
“Vlad and his company stole it from me and should be in jail,” Portnoy tweeted.
—Dave Portnoy (@stoolpresidente) February 2, 2021
Portnoy’s losses follow a stock market frenzy sparked by a group of people on Reddit who collectively bought stocks, like GameStop, driving up the value of companies’ shares. Many people turned to trading apps like Robinhood to participate in the rally. As a result, Robinhood saw an influx of new members and was forced to bar users from purchasing shares of GameStop, AMC and others to comply with “financial requirements.”
Read more: Robinhood User Launches Class Action Against Trading App Hours After Blocking GameStop Purchases
The move angered many users of the app, as well as lawmakers such as Rep. Alexandria Ocasio-Cortez, and Robinhood allowed trading to resume for stocks like GameStop. However, it has added limitations on trading 50 stocks, including GameStop – Robinhood currently caps the number of GameStop shares users can buy at 20.
Robinhood has so far raised more than $ 3 billion in emergency investments to offset the surge in trading on its platform. Tenev defended the company’s decision to initially stop trading in some shares and said Robinhood was not struggling with liquidity issues.
Read more: GameStop jumped over 600% last week. 3 pundits break down where the stock could go from here as Reddit’s army of traders takes profits and searches for their next targets.
And Tenev told Tesla CEO Elon Musk in an interview Sunday that Robinhood was forced to restrict trading for users because the rise in use prompted the National Securities Clearing Corporation to request a deposit of $ 3 billion after the stocks in question started to climb.
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