AMC Entertainment Holdings CEO Adam Aron has threatened legal action against Robinhood Markets following the e-brokerage's offering of a tokenised version of AMC stock.

Aron criticised Robinhood for offering the synthetic digital tokens, which track the price of the company's stock on a blockchain but do not offer traditional shareholder rights. He alleged that Robinhood is using an offshore operation, Robinhood Assets (Jersey) Limited, to market a "security sort of posing" as AMC without complying with U.S. securities laws.

Aron stated that his company spends millions of dollars annually to comply with U.S. securities laws and described the practice as "contemptible, outrageous, disgusting, detestable, inexcusable, vile." He further claimed the token market is "quasi-fake" and asked Robinhood to voluntarily cease and desist trading the tokens, noting that his outside securities counsel would otherwise step in to "force you to stop."

Robinhood CEO Vlad Tenev responded to the criticism with the question, "What's the concern?" Robinhood's chief legal officer, Dan Gallagher, said the company will not stop offering the AMC stock token and challenged Aron to involve his lawyers. Tenev stated that the company stands behind stock tokens.

A Robinhood spokesperson said:

"We stand firmly behind our Stock Tokens and their ability to provide international exposure to US equities, modernize the financial system and expand opportunities for ownership globally."

Robinhood's own disclosures state that its stock tokens are not registered in the U.S. and cannot be offered or delivered to U.S. persons.