Robinhood Faces $10.2M Penalty From Multiple U.S. States Over Technical Failures, Investor Harm

The settlement follows an investigation into Robinhood platform outages in March 2020 spearheaded by a regulators in seven states including California and Alabama.

Highlights

• Robinhood’s crypto arm said it was set to pay a $30 million settlement to the New York State Department of Financial Services (NYDFS) in 2021.
• This came after a $65 million payment to the U.S.
• Securities and Exchange Commission in 2020.
• The platform was also slapped with a $70 million fine by the Financial Industry Regulatory Authority (FINRA) for failing to protect customers.
• The settlement follows an investigation into Robinhood platform outages in March 2020 spearheaded by a regulators in seven states including California and Alabama.

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