Two related broker-dealers of Robinhood have agreed to pay $45 million combined in penalties to settle administrative charges brought by the Securities and Exchange Commission (SEC) over various regulatory violations. The SEC alleged that Robinhood’s subsidiaries, Robinhood Securities LLC and Robinhood Financial LLC, failed to report suspicious trading activity, implement adequate identity theft protections, and maintain required customer communications.
The agency found that Robinhood Securities alone made 11,849 inaccurate submissions of securities trading information, resulting in the misreporting of data for at least 392 million transactions. The company also failed to comply with a key short-selling regulation from May 2019 through December 2023.
Source: https://www.cnbc.com/2025/01/13/robinhood-sec-charges-45-million-penalty.html