The former employees allegedly earned more than $50,000 each by trading Hyperliquid perpetuals ahead of Robinhood token listings. US prosecutors on Tuesday charged two former Robinhood engineers with commodities fraud and wire fraud for allegedly using confidential information about upcoming cryptocurrency listings to profit from perpetual futures trades on Hyperliquid. According to the US Department of Justice (DOJ), Hefu Chai and Huaisong “Jerry” Xiang bought perpetual contracts linked to tokens ahead of Robinhood Crypto listings. The DOJ alleged each profited more than $50,000 from the trades between 2025 and 2026. The DOJ said Chai and Xiang had access to a private company Slack channel containing information about planned listings. Prosecutors allege they used that information to open long positions on Hyperliquid, closing them when their value increased after their debut on Robinhood. Read more
Robinhood CEO Vlad Tenev said issuers should be involved if tokenized products change shareholder rights or company obligations, but not when they create separate instruments backed by shares. Robinhood CEO Vlad Tenev said companies should not have veto power over tokenized stock products that do not change shareholder rights, issuer obligations or a company’s official stock ledger. In a post on X on Friday, Tenev said the question of issuer consent depends on whether a tokenized product changes the rights attached to the underlying shares or creates new obligations for the company or its transfer agent. If it does, he said the issuer should be involved. However, Tenev said if the product creates a separate financial instrument that holds or references freely transferable shares without changing the issuer’s rights, obligations, or shareholder record, issuer consent should not be required. Read more
Bitstamp accounted for $10.1 billion of Robinhood’s August crypto volume, while trading on the Robinhood app fell 46% from a year earlier. Robinhood’s crypto trading volume rose 61% month-on-month to $17.5 billion in August, though it remained 38% below the year-earlier level. The online brokerage said in its August 2026 monthly operating report, published Thursday, that Bitstamp accounted for $10.1 billion of the total, while the Robinhood app accounted for $7.4 billion. Bitstamp’s volume rose 53% from July but fell 30% year-on-year, while the Robinhood app volume increased 72% month-on-month but dropped 46% from August 2025. Read more
Robinhood will route event contracts through OG.com’s CFTC-regulated infrastructure as it expands its prediction markets business. Robinhood has taken equity stakes in Crypto.com and its newly spun-off prediction market platform OG.com as part of a multi-year deal to use OG.com’s regulated infrastructure for event contracts. Under the agreement, Robinhood will route retail event contracts through OG.com’s Commodity Futures Trading Commission (CFTC)-regulated derivatives exchange and clearinghouse, with the rollout beginning Tuesday for eligible US customers. According to Tuesday’s announcement, the online brokerage will receive initial equity stakes in both Crypto.com and OG.com, with the stakes priced at the valuations established by an earlier Citadel Securities investment in the platforms. The companies did not disclose the size or value of Robinhood’s holdings. Read more
Growing demand for tokenized stock trading may drive the Robinhood chain’s annual fees to $160 million by 2028, predicted analysts from Bernstein. Trading platform Robinhood’s blockchain network is expected to generate as much as $160 million in annual fees by 2028, Bernstein analysts forecast in a Tuesday report shared with Cointelegraph. The analysts cited growing demand for tokenized stock trading on the network, which grew to account for about 27% of the chain’s total trading volume, while native memecoin pairs trading decreased to 36% of network activity, down from 100% at launch on July 1. Bernstein said the growing demand for tokenized stocks on the Robinhood chain is driven by automated market-making pools on Uniswap that pair memecoins with stock tokens and create “reflexive demand” for both sides. Read more
AMC’s CEO criticized Robinhood’s tokenized stock offerings for being unregulated in the US and said he will request an investigation from an external securities counsel. Adam Aron, the CEO of AMC Entertainment Holdings, criticized Robinhood’s tokenized stock offerings that provide economic exposure to AMC shares, stating the company has no affiliation and that it will have a securities counsel investigate the matter. Robinhood’s stock tokens are not registered under US securities laws and are an “outrageous” offering with no affiliation to AMC, Aron wrote in a Friday X post, adding that the company will request an investigation from its outside securities counsel. Aron added that these stocks may not be offered to US investors and that they are subject to restrictions in several other jurisdictions, including Canada, Switzerland and the UK. Read more
The online brokerage continued expanding its digital asset business with Robinhood Chain, tokenized stocks and decentralized lending even as cryptocurrency transaction revenue declined. Online brokerage Robinhood posted record second-quarter revenue and earnings, though cryptocurrency transaction revenue fell 38% from a year earlier. According to the company’s earnings report on Wednesday, revenue increased 32% year over year to $1.31 billion, while its net income rose 48% to $573 million. The company reported that cryptocurrency transaction revenue fell to $100 million from about $160 million a year earlier. Separately, it recorded $40 billion in crypto trading volume during the quarter, including $18 billion on the Robinhood app and $22 billion from Bitstamp, the crypto exchange it acquired in June 2025. Read more