Alexander Kearns, a 20-year-old customer of the crypto trading platform, Robinhood, took his life on June 12. This tragedy reportedly occurred after an erroneous negative balance of more than $730,000 appeared in Alex’s account. This tragedy has prompted the platform to take measures in order to improve the platform’s offering. Earlier, Binance CEO Changpeng Zhao had highlighted the importance of anti-addiction notice on crypto trading platforms.
Robinhood is considering additional criteria for customers seeking level 3 options authorization.
According to the official announcement by the crypto trading platform, it is considering additional criteria and education for customers seeking level 3 options authorization. According to the company, this may help ensure customers understand the platform’s sophisticated options trading features. The stock and trading platform also noted that they would be expanding educational content related to options trading within their website, while also rolling out improvements to in-app messages and emails sent customers about their multi-leg options spreads. Robinhood also announced a $250,000 donation to the American Foundation for Suicide Prevention.
Binance CEO highlights anti-addiction notice.
The CEO of one of the leading crypto exchanges, Binance, Changpeng Zhao, tweeted, quoting the Forbes article about Alex, “this is truly a sad story. He added that Binance is probably one of the first crypto exchanges to implement Responsible-Trading features in our products.” He referred to an official announcement where Binance explains what responsibility features it has implemented, urging people to be extra careful. One of the implementations to prevent such tragedies is the Anti-Addiction Notice, which temporarily bans users due to “consecutive losing trades.
Earlier this month, Alex E. Kearns, a 20-year old student at the University of Nebraska, committed suicide. His parents found a note on his computer, that read “How was a 20-year-old with no income able to get assigned almost a million dollars worth of leverage?”