AMC CEO urges Robinhood to halt tokenized AMC share issuance after legal review request

AMC Entertainment CEO Adam Aron told Robinhood to stop issuing or trading a token that references AMC shares, arguing that “synthetic” AMC shares could divert demand from the actual stock and potentially strip investors of shareholder rights ^[1].

The Defiant reported that Aron demanded on Friday Robinhood halt stock tokens referencing AMC shares and said AMC asked its outside securities counsel to examine whether it can compel the broker to stop; it also reported that Robinhood’s chief legal officer advised Aron to send lawyers ^[2].

Several outlets attributed an about 7% rise in AMC shares on Friday to the public confrontation between Aron and Robinhood about tokenized shares ^[3].

Blockonomi reported that Aron emphasized the tokens are not registered under U.S. securities regulations and that AMC has “zero involvement” in the program, while Robinhood CEO Vlad Tenev responded “What’s the concern?” on X and Aron threatened litigation and demanded Robinhood halt token trading ^[3].

U.Today reported that Robinhood CEO Vlad Tenev backed the “stock token” market and a “$104 million ecosystem” amid backlash, despite AMC’s legal threats ^[4].

A separate report stated that Aron criticized Robinhood’s tokenized stock proposal ^[5].