A 20-year-old user of renowned crypto trading platform Robinhood committed suicide recently on 12th June after seeing a negative balance of $730,165 USD.
In line with a recent report published by Forbes, the user named, Alexander Kearns, a student at the University of Nebraska within the US, was living together with his parents in Naperville.
Within a note found by the family, Kearns wondered how he had been permitted to get such an enormous leverage. The note further added:
“How was a 20-year-old with no income was able get assigned almost around a million dollars worth of leverage?”
Kearns also added that he had not enabled the margin investing option available on the application.
“When he saw that $730k USD digits as a negative, he thought that he had blown up his entire future,” Bill Brewster, Kearns’ cousin-in-law along with a search analyst at Sullimar Capital Group told Forbes.
“All of us at Robinhood are deeply saddened to listen to this terrible news and we even reached to share our condolences with the family over the weekend,” Robinhood quoted, as reported by Forbes.
However, Robinhood has not shared Kearns’ account details due to its privacy concerns.
A recent tweet by Brewster on Twitter confirms that firm reached out. The tweet also adds a screenshot of the Robinhood application from Kearns’ phone, that indeed actually showed the huge negative balance mentioned.
Robinhood is a popular commission-free trading application that gained popularity among its millions of users. The company added over 3 Mln new accounts to its platform just within the of 1st quarter of this year in 2020.