CEO Robinhood apologizes to the family of the 20-year-old who died of suicide after receiving a notice of losing $ 730,000 through an app transaction

CEO Vlad Tenev has apologized to the family of a young Robinhood app user who died of suicide.

The family of Alexander Kearns, a 20-year-old University of Nebraska student, said the young man died from suicide after his Robinhood account appeared to have lost $ 730,000.

Tenev, speaking at a Congressional hearing on Feb. 18 about the recent GameStop stock frenzy, said the Kearns incident was “a deep concern” for the company as a whole.

“I am very sorry for the Kearns family for the loss,” he said. “The departure of Kearns worried me and the company as a whole.”

The US House of Representatives Financial Services Commission convened a hearing to question Tenev and other executives from Reddit and major hedge funds about their role in GameStop’s surprise rally in October. end of January.

Tenev said the company has strengthened educational material on the app, tightened requirements for option buyers, and added a live customer support line for particularly severe, post-death cases. by Kearns.

Bill Brewster, who represents the Kearns family, has previously confirmed that Kearns’ negative $ 730,000 cash balance does not reflect a user’s portfolio value or equity debt. Brewster, a financial analyst, has questioned why such a young person like Kearns could get so much margin, or take a loan that allows investors to buy stock. and options.

Tenev said in a testimony before Congress that Robinhood users are tending to be younger and younger than the average investor. The average age of a Robinhood user is 31, he said, and half of all users identify as first-time investors.

Photo of Alexander Kearns and his parents.

Robinhood announced the changes to the platform after Kearns’ death and said the company hired an education specialist. At the hearing, Tenev also said that Robinhood is looking to expand the number of customer support centers the company uses. This app expands live phone support, in addition to advanced optional cases.

Dan and Dorothy Kearns, Alexander’s parents, filed a lawsuit against Robinhood. The lawsuit claims Robinhood did not provide “meaningful customer support” to investors.

Refer to BI