Robinhood Agrees to Pay $29.75M to Settle FINRA Probes

Online trading platform Robinhood Markets has agreed to pay $29.75 million to settle multiple probes by the Financial Industry Regulatory Authority (FINRA) regarding its supervision and compliance practices, which included not addressing “red flags” of potential misconduct.

On Friday, the brokerage regulator announced that Robinhood will pay a $26 million civil fine and $3.75 million in restitution to customers.

FINRA charged Robinhood with violating numerous regulations, such as failing to establish effective anti-money laundering programs. This oversight led to missed detection of suspicious or unauthorized trading activities and the hacking of customer accounts.

Additionally, Robinhood was found to have inadequately supervised social media influencers promoting the company and failed to address warnings about delays in processing trades.