Robinhood Markets (HOOD) shares declined following public condemnation from AMC Entertainment CEO Adam Aron. Aron criticized Robinhood for offering tokenized versions of AMC stock without any official connection to the company.
The CEO labeled the practice contemptible and outrageous while questioning the legality of the offshore-issued tokens. Aron claims these unregistered securities create a fictitious market that misleads investors and undermines shareholder rights.
Aron issued a cease-and-desist demand and threatened legal action against Robinhood. AMC shares rose significantly during the dispute, while Robinhood's stock price moved lower.