AMC Entertainment CEO Adam Aron launched a scathing attack on Robinhood’s newly surging stock tokens on Thursday evening, branding the crypto-based derivatives as “contemptible, outrageous, disgusting, detestable, inexcusable, and vile.” The theater chain executive followed up on Friday by officially asking the retail brokerage to “voluntarily CEASE AND DECIST the trading of AMC stock tokens,” noting that he had already consulted AMC’s outside securities counsel to explore whether the company could force a halt.
The confrontation quickly escalated when Dan Gallagher, Robinhood’s chief legal officer and a former SEC commissioner who served from November 2011 to October 2015, issued a swift and defiant response at 10:16 a.m. ET. According to industry reports covering the exchange, Gallagher responded: “We know a little something about the U.S. securities laws and will not ‘DECIST.’ Send your lawyers and we’ll educate them.”
The friction comes as onchain activity for the asset explodes. The token’s onchain supply surged to 1,499,255 tokens, marking a massive jump from just 157,844 tokens the evening prior—representing roughly one token for every 600 AMC shares outstanding. Furthermore, trading activity recorded $200.8 million in 24-hour volume spread across 30 liquidity pools, backed by approximately $6.7 million in underlying liquidity.
Market structure dynamics sit at the core of the dispute. Robinhood issues these tokens out of Jersey tailored for non-U.S. buyers without formal registration or direct issuer consent. Because the products operate without a contractual agreement between the issuer and AMC, the film exhibitor faces limited direct corporate levers, leaving regulatory pathways through agencies like the U.S. Securities and Exchange Commission as Aron’s primary remaining avenue.
