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Robinhood nears settlement on GameStop, meme stocks suit

Trading platform Robinhood is working to finalize a settlement with investors who sued it for halting the trading of certain meme stocks in 2021, including GameStop.

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Trading platform Robinhood is working to finalize a settlement with investors who sued it for halting the trading of certain meme stocks in 2021, including GameStop.

In a May 28 filing to a Miami federal court, Robinhood’s lawyers said it is “in the process of finalizing the settlement” with the group of investors and expects settlement and dismissal in the next two weeks.

The filing did not include the settlement’s details. Robinhood, its counsel and the investor group’s counsel did not immediately respond to requests for comment.

The investors, including lead Plaintiff Blue Laine-Beveridge, alleged Robinhood “unlawfully manipulated market prices” and “wiped out tens of billions of dollars of investors’ equity” by “picking and choosing” what stocks its users could buy between Jan. 28 and Feb. 4, 2021.

The investors claimed they held shares in GameStop, AMC , Bed Bath & Beyond, BlackBerry, Nokia, trivago, Koss, Express Inc. and Tootsie Roll, which were affected by Robinhood’s action.

The investor suit focused on Robinhood’s alleged securities law violations and is part of a wider lawsuit in multiple U.S. jurisdictions over the firm’s meme stock-related actions.

The settlement follows United States District Judge Cecilia Altonaga denying a bid from the investors to file a new motion for class certification on April 19. Judge Altonaga also knocked back a similar request in November last year.

Stocks such as GameStop and AMC are referred to by some as meme stocks as many retail investors trade them based on social media hype. GameStop stocks went meteoric in January 2021 after a “short squeeze” of the stock, causing major losses for hedge funds and other short sellers while some retail traders made significant returns.

Many credited this movement to Keith Gill, also known as “Roaring Kitty,” who recently made a return to X in May. The return to X after a nearly three-year hiatus to post a series of cryptic memes excited traders and saw GME Close May 14 at $48.75 — its highest since late 2021, according to Google Finance.

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Bitcoin price risks drop to $71K as Trump tariffs hurt US business outlook

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Bitcoin is setting its sights on the $71,000 mark as market conditions shift in response to geopolitical and economic developments, including a new tariff agreement and weakening U.S. business sentiment.

Recent market activity suggests that Bitcoin is benefiting from concerns over traditional economic indicators, with investors turning to digital assets as a hedge against economic uncertainty. A rare slump in U.S. business outlook has fueled speculation that risk assets, including Bitcoin, could see increased inflows.

Additionally, ongoing global trade negotiations and tariff adjustments have contributed to market volatility, prompting investors to seek alternative stores of value. Analysts suggest that if macroeconomic pressures persist, Bitcoin could continue its upward trajectory, potentially testing the $71,000 resistance level.

Despite short-term fluctuations, Bitcoin remains a focal point for investors navigating inflation concerns, regulatory shifts, and global economic trends. The coming weeks will be critical in determining whether Bitcoin can sustain its momentum and break through key price barriers.

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Crypto donations top $1B in 2024, gain traction after Myanmar, Thailand quake

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Changpeng “CZ” Zhao, the former CEO of Binance, has donated 1,000 BNB to aid relief efforts following a powerful earthquake that struck the Thailand-Myanmar border region. The donation, valued at approximately $600,000, aims to support those affected by the disaster and assist in recovery operations.

The earthquake caused significant damage in several areas, displacing residents and impacting local infrastructure. CZ’s contribution highlights the growing role of cryptocurrency in humanitarian aid, providing fast and transparent relief funding.

The donation will be distributed to organizations working on the ground to deliver emergency assistance, including shelter, food, and medical supplies. Crypto-based aid is increasingly being utilized in disaster response efforts due to its efficiency in reaching affected communities without the delays of traditional banking systems.

As the affected regions begin the recovery process, the crypto community continues to demonstrate how blockchain technology can play a meaningful role in global humanitarian initiatives.

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Hackers are selling counterfeit phones with crypto-stealing malware

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Security researchers have uncovered a wave of counterfeit Android devices preloaded with malware designed to steal cryptocurrency, posing a significant threat to users worldwide. The infected devices, which mimic popular smartphone brands, contain malicious software capable of hijacking digital wallets and siphoning funds.

The malware, embedded at the firmware level, allows attackers to gain remote access, intercept sensitive data, and execute unauthorized transactions. Because the malicious code is deeply integrated into the device’s operating system, it is difficult to detect and remove, making it a persistent threat.

Cybersecurity experts warn that unsuspecting buyers may unknowingly expose their crypto holdings to risk by purchasing these compromised devices from unverified sellers. Users are urged to exercise caution by only purchasing smartphones from trusted retailers and manufacturers.

The discovery highlights the growing sophistication of cybercriminals targeting the cryptocurrency sector. As mobile-based crypto transactions become more common, security measures such as hardware wallet usage and multi-factor authentication are increasingly essential to safeguard digital assets from emerging threats.

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