Robinhood shares fall more than 5% after employees charged with crypto fraud

  • Robinhood employees Chai and Xiang were charged with fraudulent crypto trading.
  • 6.7% is Robinhood's decline since the start of the year.
  • Sam Bankman-Fried received a 25-year sentence after his 2023 conviction.

Robinhood shares fell more than 5% on Wednesday to a two-week low after employees Chai and Xiang were charged with fraudulent crypto trading. Prosecutors say each employee made more than $50,000. The stock is down 6.7% since the start of the year, when it traded around $115, but remains about 177% higher than its 2021 public-market debut after spending more than three years below $25. The case follows other crypto-related prosecutions, including former Coinbase product manager Ishan Wahi's 2023 insider-trading conviction, the conviction of Gotbit and founder Aleksei Andriunin, and FTX founder Sam Bankman-Fried's conviction on all seven fraud and conspiracy counts in 2023.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.