SEC · DAN (Do Anything Now) · CryptoSlate
Robinhood rejects AMC CEO’s demand to halt AMC tokenized ‘meme stock’ which offers no shareholder rights
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Social media crypto drama is heating up again.
Key facts
- On Jan. 28, 2021, Robinhood placed AMC, GameStop and other securities into position-closing-only status, temporarily restricting purchases during the market frenzy
- Robinhood's top legal officer rejected AMC Entertainment CEO Adam Aron's demand to stop trading an AMC-linked Stock Token, and Robinhood CEO Vlad Tenev said the company stands behind the product
- Robinhood's documentation describes Stock Tokens as tokenized debt securities issued by Robinhood Assets (Jersey) Limited, or RHJ
- The 2021 dispute focused on a broker limiting access to AMC shares
Summary
01 Stock Token holders are creditors of Robinhood’s Jersey issuer, with no AMC ownership or voting rights. 02 Dividends and stock splits are reflected economically through the token’s mechanics. 03 Aron threatened SEC scrutiny; the available record shows no regulatory ruling resolving the dispute. Robinhood's top legal officer rejected AMC Entertainment CEO Adam Aron's demand to stop trading an AMC-linked Stock Token, and Robinhood CEO Vlad Tenev said the company stands behind the product. Dan Gallagher, Robinhood's chief legal, compliance, and corporate affairs officer, said the company would not “DECIST,” echoing the misspelling in Aron's demand, and told AMC to send its lawyers.