Robinhood Settles $29.75 Million FINRA Probe Over Compliance Failures
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Robinhood has agreed to a $29.75 million settlement with FINRA over lapses in supervision and compliance, including failures in anti-money laundering measures and oversight of trading activities.
The settlement includes a $26 million fine and $3.75 million in restitution for affected customers.
Regulators found that between 2020 and 2021, Robinhood did not properly monitor its clearing system, leading to processing delays and trading restrictions on meme stocks like GameStop and AMC.
The company was also cited for failing to detect and report suspicious transactions, as well as for allowing unverified accounts to be opened. Additionally, FINRA flagged Robinhood for promoting misleading social media content through paid influencers.
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Without admitting wrongdoing, Robinhood accepted FINRA’s findings, which follow a separate $45 million settlement in January over allegations of securities law violations.
Despite regulatory scrutiny, the company reported a record $916 million in net income for Q4 2024, with crypto trading playing a major role, contributing $358 million to transaction-based revenue amid a 450% surge in trading volumes.
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