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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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7-Eleven South Korea to accept CBDC payments in national pilot program

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7-Eleven is set to participate in the testing phase of a central bank digital currency (CBDC) initiative, running from April to June. The retail giant’s involvement highlights the growing push for digital currency integration in everyday transactions.

The pilot program will assess the feasibility of CBDC payments at 7-Eleven stores, allowing customers to make purchases using the digital currency. The initiative is part of a broader effort to explore the real-world application of CBDCs in retail environments, potentially shaping future payment systems.

As central banks worldwide accelerate their digital currency research, private sector collaboration is seen as crucial for widespread adoption. If successful, 7-Eleven’s participation could pave the way for broader CBDC usage across retail and commercial sectors.

The outcome of the testing phase will provide valuable insights into consumer adoption, transaction efficiency, and potential regulatory considerations, influencing how CBDCs are integrated into mainstream financial systems.

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SEC and Gemini ask to pause lawsuit to explore ‘potential resolution’

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The U.S. Securities and Exchange Commission (SEC) and crypto exchange Gemini have agreed to pause legal proceedings as both sides explore a potential resolution to their ongoing lawsuit. The move signals a possible settlement in the high-profile case, which centers around Gemini’s now-defunct Earn program.

The SEC initially sued Gemini, alleging that the Earn program—designed to offer users yield on crypto deposits—operated as an unregistered securities offering. Gemini has pushed back against the claims, arguing that its operations complied with regulatory standards.

By pausing litigation, both parties may be looking for a compromise that could set a precedent for crypto lending products in the U.S. A settlement could also provide regulatory clarity for similar platforms navigating SEC scrutiny.

While the outcome remains uncertain, the crypto industry is closely watching the case, as its resolution could impact future enforcement actions and the broader regulatory approach toward digital asset lending services.

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GameStop finishes $1.5B raise to add Bitcoin to its balance sheet

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GameStop has successfully completed a debt offering, raising capital that may be used to acquire Bitcoin, signaling the company’s deeper foray into digital assets. The move aligns with its broader strategy to diversify beyond traditional retail operations and into emerging financial technologies.

While GameStop has not confirmed the exact allocation of the funds, market speculation suggests that a portion could be used to buy Bitcoin, following in the footsteps of companies like MicroStrategy. The potential investment would reinforce GameStop’s ongoing pivot toward blockchain and digital assets, an effort that began with its NFT marketplace and crypto-related initiatives.

Analysts see this development as part of a growing trend of corporations exploring Bitcoin as a reserve asset amid concerns over inflation and monetary policy. If GameStop proceeds with the acquisition, it could further validate Bitcoin’s role as a strategic investment for publicly traded companies.

The company’s board will ultimately decide how the newly raised capital is deployed. Investors and the broader crypto market are watching closely for any official announcements regarding GameStop’s Bitcoin strategy.

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