Binance CEO Highlights the Importance of Anti-Addiction Notice for Crypto Exchanges after a 20-Year Old Committed Suicide for Losing USD730K On Robinhood

The CEO of Binance, Changpeng Zhao or CZ, recently highlighted the importance of anti-addiction notices when trading high-risk products, such as options.

This has come from the tragic story of a 20-year old student who took his life after seeing a $730,000 negative balance on the popular retail trading app Robinhood.

Alex E. Kearns, a 20-year old student at the University of Nebraska, committed suicide early this month. His parents then found a note on his computer, which asked a question: “How was a 20-year-old with no income able to get assigned almost a million dollars worth of leverage?”

Kearns took up stock trading during the months of the COVID-19 pandemic through the popular retail trading app called Robinhood.

Kearns’ cousin in law, Bill Brewster, explained the broken story that Alexander was “interested in investing. He opened a Robinhood account. And, he seemed to be enjoying the markets. […] So, he began buying and selling options. Fast forward to sometime this past week, and his account showed him owing $700k+. […] The emotional stress from the exposure caused him to take his own life.”

CZ highlights the responsibility of exchanges.

The CEO of the Binance left a tweet which quotes the Forbes article about Alex, stating:

“This is truly a sad story. Binance is probably one of the first crypto exchanges to implement Responsible-Trading features in our products.”

Also, CZ mentioned an official announcement from Binance that explains what responsibility features it has implemented, as well as calls for people to be extra careful. One of them is the Anti-Addiction Notice, which temporarily bans users due to “consecutive losing trades.

Binance participates in the crypto committee of IAMAI.

The world’s leading cryptocurrency exchange has recently participated in the Internet and Mobile Association of India (IAMAI). According to Binance, this partnership is a first step in implementing industry best practices in the Indian crypto market.

The crypto exchange continues to acquire crypto and blockchain businesses around the world over the last few years. Binance also launched its mining pool this year while the crypto community was expressing concern over the centralization of hash power. Currently, the leading cryptocurrency exchange also launched a platform for the UK’s institutional and retail investors.

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