Robinhood, Gamestop $GME and the SEC
Stock trading app Robinhood on Friday confirmed it is cooperating with inquiries from US regulators into its decision to temporarily throttle purchases of shares in companies such as GameStop during frenzied trading in January.
The free brokerage platform is facing inquiries from federal financial regulators, state attorneys general and the US Congress, according to a filing with the Securities and Exchange Commission.
Robinhood, which says it is "cooperating" with the entities, is already facing dozens of class action lawsuits.
The lawsuits "generally allege breach of contract, breach of the implied covenant of good faith and fair dealing, negligence, breach of fiduciary duty and other common law claims," Robinhood said in the filing.
"We believe that the claims in these lawsuits are without merit and intend to defend against them vigorously."
Key players in the GameStop shares trading frenzy told skeptical US lawmakers last week that their actions were above board and in line with ordinary stock market business.
Founders of Robinhood and the online forum Reddit were among those to testify at a House of Representatives financial services committee hearing.
Unprecedented recent volatility -- with shares in the GameStop video game store surging more than 400 percent -- prompted calls for regulators to review the role of social media, hedge funds and trading platforms which some allege manipulated the market.
The GameStop Wall Street upheaval was sparked via a "subreddit" known as WallStreetBets.
"I am not trying to throw anyone under the bus," Robinhood co-founder and chief executive Vlad Tenev told the House committee meeting.
"All I can say is Robinhood played it by the books."
AI is the Neat Handwriting of the Illiterate
A model in the hands of someone who has read the filing and walked the plant is a clerk. The same model, speaking for someone who has done neither, is a disguise. On AI slop, phantom citations and factslop, why finish stopped being evidence of work, and the containment layer KXCO built so a machine cannot speak as the institution until a source is attached.
Worthship: Do Not Conform to the Age
Worthship is the older English word for worship, and it means to ascribe worth. Bishop Robert Barron preached Romans 12 on 30 August. This essay follows the text into the prison letters, and puts two questions to a graph: do the four readings of that Sunday agree, and was Paul free or in chains when he wrote about despair?
The Truth in All Its Ugliness Must Survive
A majority vote does not determine the truth. Consensus is a mood, gossip is a sport, and a model will write the pretty version for free. Why the ugly number has to survive, why a record beats a dashboard, and what KXCO was built to keep standing when the room changes its mind.
Don't Be the Best, Be the Only: Winning in an AI World
AI is repricing competence downward. What it cannot reproduce is a life. The case for remaining non-fungible, why friction still produces the best ideas, and what it means to build AI systems that keep the human intellect in them.
Every story, signed and delivered.
Subscribe to the kxco channel and get the headline, the AI-written key takeaways, and the chain-anchor link the moment we publish. Audio versions and per-ticker subscriptions arrive in the next iteration.