SEC Charges Robinhood Over 10 Violations, Including Identity Theft And Trading Data Failures

Benzinga 2025-01-14

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Robinhood Securities LLC and Robinhood Financial LLC agreed to pay $45 million in penalties to settle SEC charges of violating over ten securities law provisions. The SEC detailed failures in reporting suspicious trading, implementing identity theft protections, addressing unauthorized system access, and maintaining required records from 2020 to 2021. Robinhood Securities also failed to provide accurate trading information, misreporting data on over 390 million transactions over five years. The SEC found violations of Regulation SHO in the company’s stock lending and fractional share programs. Robinhood's General Counsel Lucas Moskowitz stated the issues were historical and resolved, emphasizing the firm's commitment to innovation.

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