Cryptocurrency and stock trading platform Robinhood will pay the sum of $10.2 million in penalty for operational and technical failures that harmed main street investors.
Highlights
- The settlement is coming following an investigation led by securities regulators from California, New Jersey, Delaware, Texas, Alabama, South Dakota, and Colorado.
- Regulators said Robinhood repeatedly failed to serve its clients, after outages locked millions out of trading in March 2020.
- The New York Department of Financial Services announced a $30 million penalty on Robinhood’s crypto business arm last year August for alleged anti-money laundering, cybersecurity, and consumer protection laws violations.
- Some clients took to social media after the outage, claiming that they planned to pull funds from the platform and several others claimed they lost as much as $100,000 due to the outages.
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