Odaily News Robinhood online trading platform agreed to pay $29.75 million to resolve an investigation by the U.S. Financial Industry Regulatory Authority (FINRA) into its supervisory and compliance practices. The settlement includes a $26 million fine and $3.75 million in customer restitution.
The investigation found that Robinhood failed to properly supervise the clearing system, resulting in transaction delays; failed to identify and report irregular transactions, suspicious fund movements, and hacking of customer accounts; and opened "thousands of accounts" without verifying the identities of customers.
This is the second settlement reached by Robinhood in two months. In the fourth quarter of 2024, Robinhood reported record net income of $916 million, and cryptocurrency trading revenue increased significantly. (Cointelegraph)