AMC CEO Demands Robinhood Halt AMC Token Trading: Real Shares or Not?

AMC CEO Adam Aron demanded that Robinhood halt AMC token trading, arguing that the product does not grant actual share ownership; outside securities counsel is reviewing the matter.

According to developments reported by Wu Blockchain, AMC Entertainment CEO Adam Aron opposed the AMC Stock Token product offered by Robinhood. Aron demanded a halt to trading, arguing that AMC has no connection, authorization, or approval regarding the product.

Aron claimed that the tokens are not registered under US securities laws and criticized the practice as “vile, ugly, disgusting, and unforgivable.” The CEO also announced that the matter would be reviewed by outside securities counsel.

Robinhood token does not grant actual share ownership

Robinhood documents state that the Stock Token products are tokenized debt securities issued by a Jersey-based entity. The product can provide economic exposure to the price movement of AMC stock but does not grant the investor actual share ownership.

Due to this structure, token holders do not automatically obtain the direct ownership rights held by AMC shareholders. The documents state that the products are not registered in the US and are subject to offer and sale restrictions in certain jurisdictions.

Robinhood CEO Vlad Tenev responded briefly to Aron’s statement by asking, “What is the concern?” Thus, the debate focused on whether the product is approved by AMC, as well as what rights it offers to investors.

Aron’s statements highlighted the gap between Robinhood’s product description and the approach of AMC management.