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Angry customer show up at Robinhood's headquarters in the wake of GameStop's trading chaos

Angry customer show up at Robinhood's headquarters

February 12, 2021: Some Robinhood traders who are unable to get in touch with customer service have shown up at its front door.

According to the police reports, Robinhood’s clients have come to the headquarters in California, wanting to speak to a representative or vandalizing the property, in some cases.

A Menlo Park Police spokesperson said the incidents included around 15 people protesting outside the office.

Few more suspects, according to the police, sawed into a sculpture on Robinhood’s property. A man threw animal feces at the front door.

Robinhood came under fire from lawmakers and the users for restricting the buy-side of trades at the end of January.

Some accused Robinhood of protecting hedge funds that had shorted stocks, like GameStop. Robinhood said it did not make those decisions based on market makers’ interest or hedge funds and needed to limit trades to increased capital requirements.

Rayz Rayl, aged 43, said he had been using the free trading app for seven years and recommended Robinhood to friends before the end of January.

After failed attempts to contact Robinhood’s customer service, he drove over 2,400 miles from his home in Sellersburg, Indiana, to Robinhood’s headquarters to close down his account last Thursday.

“I have money in my Robinhood account that I need for living expenses,” Rayl said in an interview outside of Robinhood’s headquarters.

Another Robinhood client was witnessed by CNBC, knocking and kicking the front door of Robinhood, claiming the start-up had ”$2 million of my money on hold,” and asking to “take my account number down.” The man declined to speak about his complaint.

In the weeks since more than two dozen lawsuits have been filed against Robinhood from clients seeking damages.

The Menlo Park incidents only represent a handful of Robinhood’s 13 million customers. Despite the backlash online and on Capitol Hill, the start-up appeared to add record accounts in late January.

 JMP Securities estimates that Robinhood witnessed 600,000 mobile downloads in the week of GameStop trading.

Robinhood’s user policies outline the potential for losses and restrictions on trading. Users agree that “Robinhood may restrict the trading of securities, or the substitution of securities, in any of My Accounts.”

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