A Robinhood spokesperson confirmed the notice is legitimate, but could not comment on whether all users received the same letter.
The letter details three options the user can use to liquidate their accounts. The trader is advised to either make an Automated Customer Account Transfer from another brokerage service, request an automated clearing house transfer to a bank connected to their Robinhood account, or request a written check to an address on file.
The notice adds that the user's account is limited to position-closing trades only. Traders with "negative equity balances" are to satisfy the debts before their account closes in 60 days.The hack was first discovered by members of the WallStreetBets sub-reddit after one trader turned a $2,000 deposit into a $50,000 position. The trade involves users selling call options with money borrowed through Robinhood Gold.
"We'll continue to monitor closely for any type of abusive activity on our platform and will take action as appropriate," the spokesperson said.
The traders are probably out of the country...
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