Robinhood’s tokenized stocks (blockchain-based instruments linked to traditional shares) came under scrutiny after an AMC-linked token briefly surged to $18.04, versus $2.54 for AMC Entertainment’s share at the previous New York Stock Exchange close. The token later fell toward $3 and stabilized near $2.67, while AMC shares closed Friday at about $2.65, up 4.3%. The Defiant reported $10.2 million in volume in the deepest AMC/USDG liquidity pool during the hour of the spike, while onchain analysis found outstanding token supply rose from about 157,844 to roughly 1.5 million over 18 hours. AMC Entertainment CEO Adam Aron challenged the product’s legality and asked Robinhood to stop trading AMC-linked tokens, but Robinhood rejected the demand. Robinhood says the products are tokenized debt securities issued by Robinhood Assets (Jersey) Limited, provide economic exposure without ownership rights, and are not registered under U.S. securities laws or available to U.S. persons. The episode also prompted scrutiny of Robinhood Chain after data submissions to Ethereum paused twice on Sept. 4 for a combined 14 minutes, although the chain continued producing blocks.