Robinhood pays $45M to settle SEC violations over reporting and cybersecurity missteps
Robinhood will pay $45 million in civil penalties to settle SEC charges related to securities law violations. The settlement includes $33.5 million from Robinhood Securities LLC and $11.5 million from Robinhood Financial LLC. Violations occurred from 2019 to 2022 and included inaccurate reporting, poor cybersecurity, and inadequate fraud prevention. Specific breaches involved delays in reporting suspicious transactions, insufficient identity theft protections, and unauthorized access to user data. Robinhood Securities also faced scrutiny for fractional share trading and regulatory reporting issues. Both firms admitted to the SEC's findings and committed to internal reviews for compliance. The SEC order does not affect Robinhood's crypto operations, which reported $119 billion in trading volume and $38 billion in digital assets under custody as of November 2024.
