Robinhood users complained that the platform didn’t provide the help they needed in the heists against their trading accounts because the platform has no emergency support line. In our latest crypto news, we are reading more about the report.
Robinhood users said that their accounts were liquidated by thieves but they recounted unhelpful responses by the personal investing fintech according to a report by Bloomberg. Five customers claimed that Robinhood acted slowly because they don’t have an emergency support line. One user named Bill Hurley, a metal worker from Connecticut said that he lost about $5000 in stock and BTC in theft and commented that Robinhood responded two weeks after he requested help.
Hurley explained that he had reached out to the exchange while the thieves were still transferring the funds to a Revolut account. He also said that he didn’t hear from the platform until Thursday. Bitcoin held on Robinhood cannot be transferred off the platform because of regulatory restrictions but it can be cashed out. The company explained that the thieves targeted users’ email accounts and didn’t gain access from an internal security breach. The fintech said that they are working on those impacted to secure the accounts but didn’t immediately respond to requests for comment.
In the previous news as we reported, Robinhood cancels its application with the regulator because of the regulatory challenges the company faced in receiving a charter. A spokesperson from the company said that ‘’Robinhood will continue to focus on increasing participation in the financial system and challenging the industry to better serve everyone.’’ Robinhood applied for the bank charter with the United States Office of the Comptroller of the currency back in April stating that it would be the first step to being able to offer more traditional banking products and services. The full-service bank could also have operated alongside the mobile-focused trading arm which will make it possible for users to trade crypto and choose options on their phones and desktops.
Previously, Robinhood faced a lot of regulatory issues after it rebranded the name of the service to ‘’cash management’’ and removed the references to deposit protection. The US politicians accused the company of failing to offer an increased degree of transparency for more than 850,000 customers.
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