A 20 year old University of Nebraska student took his own life after his Robinhood account showed a massive negative balance, his family said, adding that they wanted answers from the popular free stock trading app.
A Robinhood representative said that it would not share any details about the account, citing privacy concerns. "All of us at Robinhood are deeply saddened to hear this terrible news, and we reached out to share our condolences with the family", the company representative said.
One family member who was highly upset and blamed the company for the young man's suicide, said, "this story has to be told, and Robinhood need to answer questions. They are asking millenials to trust them with their savings, and they are turning it, into, in my opinion, a game. They are not thinking about basic design flaws. - anyone who cares about financial responsibility would'nt put a negative cash balance in front of somebody without some sort of warning or reasonable customer support".
Robinhood, one of the first companies to make commission free stock trading commonplace, is worth more than $8 billion following the latest round of funding. Qualified users can simply apply in the app to trade options contracts - inherently risky investments that give buyers the right but not the obligation to buy or sell stocks at a certain price within a certain period.
"We are committed to continuously improving our platform and are reviewing our options offering to determine if any changes may be appropriate," Robinhood said.
Source: Business Insider