- Robinhood restricted the accounts of users who took advantage of an "infinite lever", and a leaked letter indicated how the company alerted the participating dealers
- The notice lists three options that the merchant uses to liquidate of assets, and it should be noted that "negative equity balances" need to be repaid within 60 days. Users who use "infinite leverage" and a leaked letter sent to a terminated trader reveals that Announced the termination of the account. 19659006] The letter contains three options that allow the user to resolve their accounts. The dealer is recommended to do one of the following:
- Make an automatic transfer of the customer account from another broker service
- Request an automatic transfer of the clearing house to a bank connected to their Robinhood account.
- Request a written check to a registered address.
The note adds that the user account is limited to closing items only. Dealers with "negative equity balances" will have to settle their debts within 60 days before closing their accounts.
Read the full letter below. Personal information is edited:
The hack was first discovered by members of the Subreddits r / WallStreetBets after a trader converted a $ 2,000 deposit into a $ 50,000 position. Trading involves the sale of call options with funds borrowed through Robinhood Gold. The app then mistakenly added the value of the options sold to the users' cash stack, allowing them to repeat the trade without clear boundaries.
A Robinhood spokesperson said Thursday that the company had closed the gap and planned a "permanent update" to "prevent anyone from engaging in this pattern of trade".
"We will continue to closely monitor and take appropriate action on any kind of abusive activity on our platform," the spokesman said.
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