{"id":9543,"date":"2025-03-10T07:34:29","date_gmt":"2025-03-10T06:34:29","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=9543"},"modified":"2025-03-10T07:34:29","modified_gmt":"2025-03-10T06:34:29","slug":"robinhood-agrees-to-30-million-settlement-over-regulatory-investigations","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/03\/10\/robinhood-agrees-to-30-million-settlement-over-regulatory-investigations\/","title":{"rendered":"Robinhood Agrees to $30 Million Settlement Over Regulatory Investigations"},"content":{"rendered":"<p><\/p>\n<div data-v-93e1f8b6=\"\">\n<p>The online trading service Robinhood has consented to disburse $29.75 million to resolve multiple investigations from the Financial Industry Regulatory Authority (FINRA) concerning the company&#8217;s oversight and compliance measures.<\/p>\n<p>The settlement amount consisted of a $26 million civil penalty and $3.75 million in restitution to clients, FINRA <a data-ct-non-breakable=\"null\" href=\"https:\/\/www.finra.org\/media-center\/newsreleases\/2025\/finra-orders-robinhood-financial-pay-375-million-restitution\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">stated<\/a> on March 7. Robinhood neglected to \u201caddress warning signals of possible misconduct,\u201d according to FINRA, resulting in violations related to Anti-Money Laundering and supervisory and disclosure standards.<\/p>\n<p>FINRA <a data-ct-non-breakable=\"null\" href=\"https:\/\/www.finra.org\/sites\/default\/files\/2025-03\/robinhood-AWC-030725.pdf\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">determined<\/a> that Robinhood Financial failed to adequately oversee its clearing system despite evident processing delays caused by heightened demand from March 2020 to January 2021, which coincides with the period when Robinhood restricted trading in popular <a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/gamestop-bitcoin-buys-would-shake-tradfi-investors-swan-md\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">meme stocks like GameStop<\/a> (GME) and <a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/amc-entertainment-ceo-briefs-community-on-crypto-nft-project-updates-in-latest-earnings-call\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">AMC Entertainment Holdings<\/a> (AMC).<\/p>\n<p>According to FINRA, Robinhood Financial and Robinhood Securities also failed to recognize, examine, or report manipulative trading actions, questionable financial transactions, and cases where customer accounts were compromised by external hackers.<\/p>\n<p>Additionally, FINRA found that Robinhood Financial had opened \u201cthousands of accounts\u201d without properly verifying the identity of the customers, it noted.<\/p>\n<p>Consequently, Robinhood did not establish or execute sufficient Anti-Money Laundering protocols, the financial oversight authority remarked.<\/p>\n<p>Furthermore, Robinhood neglected to \u201cadequately supervise and retain\u201d communications on social media by endorsing posts from compensated social media promoters, FINRA added.<\/p>\n<blockquote><p>\u201cSome of these communications contained statements that were misleading or not directly fair and balanced, thus deceiving investors.\u201d<\/p><\/blockquote>\n<figure><figcaption style=\"text-align: center;\">\n<p><em>Excerpt from FINRA\u2019s examination of Robinhood. Source: <\/em><a data-ct-non-breakable=\"null\" href=\"https:\/\/www.finra.org\/sites\/default\/files\/2025-03\/robinhood-AWC-030725.pdf\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\"><em>FINRA<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n<p>The $3.75 million in restitution arose from Robinhood Financial giving clients inaccurate or incomplete disclosures via \u201ccollaring\u201d market orders by transforming them into limit orders.<\/p>\n<p>Both Robinhood Financial and Robinhood Securities accepted the finality of FINRA\u2019s conclusions without admitting or contesting the allegations.<\/p>\n<p><em><strong>Related: <\/strong><\/em><a data-ct-non-breakable=\"null\" href=\"https:\/\/www.buzzsprout.com\/2096415\/episodes\/16662237\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\"><em><strong>DeFi\u2019s Missing Link: Fixed Income (feat. Treehouse)<\/strong><\/em><\/a><\/p>\n<p>This settlement comes only two months after two Robinhood entities achieved a <a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/robinhood-pay-45-million-penalty-over-securities-violations\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">$45 million settlement<\/a> with the <a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/magazine\/sec-crypto-laws-unclear\/\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">US securities regulator<\/a> on January 13 following an investigation that alleged the company had breached more than 10 securities regulations.<\/p>\n<p>Robinhood Financial and Robinhood Securities \u201cacknowledged certain findings\u201d in that inquiry, which alleged they did not maintain and preserve electronic communications<a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/robinhood-crypto-transfers-europe\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\"> from customers<\/a> during 2020 and 2021, among other infractions.<\/p>\n<p>In addition, Robinhood announced a record-breaking <a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/robinhood-shares-surge-q4-crypto-revenue\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">$916 million net revenue<\/a> and over $1 billion in total revenue for the fourth quarter of 2024.<\/p>\n<p>Crypto revenue constituted $358 million of Robinhood\u2019s $672 million revenue from transactions \u2014 representing a 200% increase year-on-year \u2014 while <a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/learn\/articles\/on-chain-volume-vs-trading-volume-differences-explained\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">crypto trading volumes<\/a> surged 450% year-on-year to reach $71 billion.<\/p>\n<p><em><strong>Magazine: <\/strong><\/em><a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/magazine\/max-burwick-lawyer-sue-pump-fun-ambulance-chaser-of-crypto\/\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\"><em><strong>Meet lawyer Max Burwick \u2014 \u2018The ambulance chaser of crypto\u2019<\/strong><\/em><\/a><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\" label=\"Subscription Form: Markets Outlook\"\/><\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/robinhood-pay-30-million-to-settle-us-regulator-probe?utm_source=rss_feed&#038;utm_medium=rss_tag_regulation&#038;utm_campaign=rss_partner_inbound\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The online trading service Robinhood has consented to disburse $29.75 million to resolve multiple investigations from the Financial Industry Regulatory Authority (FINRA) concerning the company&#8217;s oversight and compliance measures. The settlement amount consisted of a $26 million civil penalty and $3.75 million in restitution to clients, FINRA stated on March 7. Robinhood neglected to \u201caddress<\/p>\n","protected":false},"author":3,"featured_media":9544,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[1644],"class_list":["post-9543","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy-and-markets","tag-return-a-list-of-comma-separated-tags-from-this-title-robinhood-to-pay-30m-to-settle-us-regulator-probes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Robinhood Agrees to $30 Million Settlement Over Regulatory Investigations - WSJ-Crypto<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/wsj-crypto.com\/index.php\/2025\/03\/10\/robinhood-agrees-to-30-million-settlement-over-regulatory-investigations\/\" \/>\n<meta property=\"og:locale\" content=\"it_IT\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Robinhood Agrees to $30 Million Settlement Over Regulatory Investigations - WSJ-Crypto\" \/>\n<meta property=\"og:description\" content=\"The online trading service Robinhood has consented to disburse $29.75 million to resolve multiple investigations from the Financial Industry Regulatory Authority (FINRA) concerning the company&#8217;s oversight and compliance measures. 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