Arab Press

بالشعب و للشعب
Tuesday, Feb 24, 2026

GameStop saga: Robinhood denies robbing poor to help rich

GameStop saga: Robinhood denies robbing poor to help rich

Key figures at the heart of the saga line up to insist there was no foul play as politicians search for weaknesses in the market.

The chief executive of Robinhood has dismissed suggestions the zero-commission trading platform tried to stop its own users profiting at the expense of hedge funds during the GameStop saga.

Vladimir Tenev was among prominent figures involved in the share trading frenzy last month to give evidence to a House of Representatives' committee investigating any possible wrongdoing and potential conflicts in the market's structure.

There was an unprecedented surge in the struggling retailer's market value when users of a forum on Reddit, who largely held accounts on Robinhood, collaborated to inflict billions of dollars of losses on hedge funds and other so-called short-sellers - those betting that the share price will fall.

The chart reflects closing daily prices during the year to date


It culminated in shares nearing $500 each at an intraday peak - from a lowly $20 - as stock options were greedily snapped up.

They were changing hands for $43 on Thursday as politicians attempted to get to the bottom of whether punters had been short changed when the price eventually crashed at the beginning of February.

A particular concern expressed before the hearing was that Robinhood, which has more than 13 million users, and some competitors had restricted and even suspended trading on the stock and shares in other companies at the height of the trend.

It drew fury at the time from prominent lawmakers, including Republican senator Ted Cruz, who accused the platforms of protecting the hedge funds at the expense of the little guy.

But Mr Tenev told the House financial services committee, in written evidence before Thursday's hearing, that the decision to halt buying was solely due to the need to meet regulatory capital requirements.

"Any allegation that Robinhood acted to help hedge funds or other special interests to the detriment of our customers is absolutely false and market-distorting rhetoric", he said.

He said of the trading restrictions: "Despite the unprecedented market conditions in January, at the end of the day, what happened is unacceptable to us.

"To our customers, I apologise, and please know we are doing everything we can to make sure this can't happen again."

His counterpart at hedge fund Citadel, and majority-owner of the company that handles the bulk of Robinhood's customer orders, denied any influence over Robinhood's decision.

Kenneth Griffin said the first he had learned of trading restrictions at Robinhood was via the news media.

One member of the committee accused him of "wasting my time" and failing to answer as he questioned the executive on whether Citadel gives better prices to certain brokerages.

Another to defend his role was a YouTuber known as Roaring Kitty, whose real name is Keith Gill.

Keith Gill, aka Roaring Kitty, is being sued by subscribers over claims he misled GameStop investors


He dismissed suggestions that he had helped coordinate the GameStop rally in some way through recommendations on his video channel.

Mr Gill, who is reported to have collected healthy profits from his holdings, insisted his pre-frenzy investment was solely based on publicly-known fundamentals of the business.

It was revealed on Wednesday that he was facing a class action lawsuit brought by investors who claim he duped them into buying options.

Mr Gill has dismissed the allegations as baseless.

He told the committee during his evidence: "I am not an institutional investor, nor am I a hedge fund.

"I do not have clients and I do not provide personalised investment advice for fees or commissions.

"I am just an individual whose investment in GameStop and posts on social media were based upon my own research and analysis."

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
GCC Secretary-General Holds Talks with EU Ambassador in Riyadh
Gulf States’ AI Investment Drive Seen as Strategic Bet on Technology and U.S. Security Ties
African Union Commission Chair Meets Saudi Vice Foreign Minister to Deepen Strategic Cooperation
President El-Sisi Holds Strategic Talks with Saudi Crown Prince in Riyadh
Lucid Unveils Up to $12,000 Incentive for Air and Gravity Models in Saudi Arabia
Saudi Arabia Enters Global AI Partnership, Expanding Its Role in International Technology Governance
Saudi Arabia’s Landmark U.S. LNG Agreement Signals Major Strategic Shift
Saudi Arabia Accelerates Global Gaming Push with Billion-Dollar Deals and Expanded PIF Mandate
Saudi Arabia Reports $25.28 Billion Budget Deficit in Fourth Quarter of 2025
Alvarez & Marsal Tax Establishes Dedicated Pillar Two and Transfer Pricing Team in Saudi Arabia
United States Approves Over Fifteen Billion Dollars in Major Arms Sales to Israel and Saudi Arabia
Pre-Iftar Walks Gain Momentum as Ramadan Wellness Trend Spreads
Middle East Jackup Rig Fleet Contracts Further After Saudi Drilling Suspensions
Türkiye and Saudi Arabia Prepare to Sign Five Gigawatt Renewable Energy Deal at COP31
King Mohammed VI Congratulates Saudi Leadership on Founding Day, Reaffirming Strategic Ties
US Envoy Huckabee Clarifies Remarks on Israel After Expansionism Controversy
Saudi Arabia Introduces Limited Exceptions to Regional Headquarters Requirement for Foreign Firms
Saudi Arabia Joins Global Partnership on Artificial Intelligence, Elevating Its Role in Shaping AI Governance
Saudi Arabia and Arab States Mobilise Diplomatically After U.S. Envoy’s Israel Remarks
Cristiano Ronaldo Reaffirms His Commitment to Saudi Arabia Amid Transfer Speculation
Proposed US-Saudi Nuclear Deal Raises Questions Over Uranium Enrichment Provisions
Saudi Arabia Sends 81st Aid Flight to Gaza as Humanitarian Air Bridge Continues
Global Games Show Riyadh 2026 Positioned as Catalyst for Saudi Arabia’s Vision 2030
Saudi Arabia Eases Procurement Rules, Allowing Foreign Firms Greater Access to Government Contracts
Türkiye and Saudi Arabia Seal Two Billion Dollar Solar Energy Agreement
Saudi Crown Prince Reportedly Sends Letter to UAE Leader Over Yemen and Sudan Policies
Saudi Arabia Voices Concerns to UAE Over Sudan Conflict and Yemen Strategy
Saudi Arabia Joins Global Artificial Intelligence Alliance to Strengthen International Collaboration
Shura Island Positioned as Flagship of Saudi Arabia’s Ambitious Red Sea Tourism Drive
Saudi Arabia Rebukes Mike Huckabee Over Remarks in Tucker Carlson Interview
OpenAI CEO Sam Altman praises the rapid progress of Chinese tech companies.
Concerns Mount Over Potential Saudi Uranium Enrichment in Prospective US Nuclear Accord
Trump Directs Government to Release UFO and Alien Information
Trump Signs Global 10% Tariffs on Imports
Investability Emerges as the Defining Test of Saudi Arabia’s Next Market Phase
Saudi Arabia’s Packaging Market Accelerates as Sustainability and E-Commerce Drive Transformation
Saudi Arabia Unveils $32 Billion Push Into Theme Parks and Global Entertainment
Saudi Crude Exports to India Climb Sharply, Closing Gap With Russia
Saudi Arabia’s Halal Cosmetics Market Expands as Faith and Ethical Beauty Drive Growth
ImmunityBio Secures Saudi Partnerships to Launch Flagship Cancer Therapy
United Kingdom Denies U.S. Access to Military Base for Potential Iran Strike
Türkiye and Saudi Arabia Launch Expanded Renewable Energy Partnership
US Supreme Court Voids Trump’s Emergency Tariff Plan, Reshaping Trade Power and Fiscal Risk
Mongolian Mining Family’s HK$247 Million Stanley Home Purchase Highlights Resilient Luxury Market
UK Intensifies Efforts to Secure Saudi Investment in Next-Generation Fighter Jet Programme
Saudi Arabia Tops Middle East Green Building Rankings with Record Growth in 2025
Qatar and Saudi Arabia Each Commit One Billion Dollars to President Trump’s ‘Board of Peace’ Initiative
Ramadan 2026 Prayer Times Set as Fasting Begins in Saudi Arabia and Egypt Announces Dates
Saudi Arabia Launches Ramadan 2026 Hotel Campaign to Boost Religious and Leisure Tourism
Saudi Arabia Seeks Reroute of Greece-Bound Fibre-Optic Cable Through Syria Instead of Israel
×