Odaily Planet Daily News Robinhood online trading platform agreed to pay $29.75 million to resolve the U.S. Financial Industry Regulatory Authority (FINRA) investigation into its supervision and compliance practices. The settlement amount includes a $26 million fine and $3.75 million in customer compensation.
The investigation found that Robinhood failed to reasonably supervise the clearing system, resulting in transaction delays; failed to identify and report illegal transactions, suspicious fund flows and hackers’ intrusions into customer accounts; in addition, it opened “thousands of accounts” without verifying the identity of customers.
This is the second settlement agreement reached by Robinhood in two months. In the fourth quarter of 2024, Robinhood reported a record net income of $916 million, and cryptocurrency trading revenue increased significantly. (Cointelegraph)