Robinhood, Melvin, and Citadel execs expected to testify on GameStop before Congress

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Executives from firms concerned within the current controversy between hedge funds and retail buyers from Reddit could also be testifying at a Home Monetary Companies Committee listening to subsequent week.

In line with a Reuters report, two individuals accustomed to the matter said executives from buying and selling app Robinhood, funding supervisor Melvin Capital, and hedge fund Citadel are anticipated to testify in a congressional listening to scheduled for Feb. 18. Bloomberg reported that Citadel founder Ken Griffin is more likely to be in attendance, as is Robinhood CEO Vlad Tenev. Nonetheless, it’s unclear right now whether or not Melvin founder Gabriel Plotkin or anybody else from the hedge fund will talking on the listening to.

At the moment, Reddit CEO Steve Huffman told the New York Occasions that the social media community will take part in subsequent week’s proceedings with different figures related to the GameStop trades. Committee chair Maxine Waters said in a Feb. 4 interview that Keith Gill, higher identified by his Reddit username DeepFuckingValue, may even communicate.

The digital listening to will discover allegations of market manipulation from Robinhood and main hedge funds in response to Redditors’ brief squeeze of GameStop inventory and others. Outstanding Home members together with Alexandria Ocasio-Cortez and Rashida Tlaib had been among the first lawmakers to call for Robinhood to reply to the Monetary Companies Committee after the buying and selling platform suspended buys for GameStop stock on Jan. 28.  

The timing of the restricted trades was suspicious given Robinhood’s financial ties to both Melvin and Citadel, resulting in hypothesis by many who the platform had acted to guard hedge funds’ monetary pursuits on the expense of retail buyers on Reddit. Tenev reportedly said that the choice about restrictions was made by a clearinghouse and was primarily based on the capital necessities.

Although Robinhood later lessened restrictions for buys of GameStop stock and others, the value of GME has fallen nearly 90% from a excessive of $469.49 on Jan. 28 to $49.50 on the time of publication.