The customer, 20-year old Alex Kearns, threw himself in front of a train after he believed he suffered $730,000 in losses. In his suicide note, Kearns, a sophomore at the University of Nebraska at Lincoln, accused Robinhood of allowing him to pile on too much risk. It is unclear whether Kearns actually lost $730,000 or whether he misread the financial statement.
In response, Robinhood, a free-trading app, announced it would be making changes. It will increase eligibility requirements and “consider additional criteria” when it comes to more sophisticated options trading. It will also update its user interface and improve its messaging and communications.
The company also announced it is donating $250,000 to the American Foundation for Suicide Prevention.Last modified on Monday, 22 June 2020