Finra investigation against Robinhood will be discontinued for payment of around $ 30 million
- Robinhood agreed to pay around $ 30 million punishment and compensation to enclose several finra examinations on compliance defects, including money laundering allegations and delayed transaction processing.
- The Financial Industry Regulatory Authority Finra is an approval authority in the United States that ensures the supervision of people in the securities industry.
Robinhood Markets has agreed To pay $ 29.75 millionto enclose numerous finra examinations. The comparison includes a civil punishment of $ 3.75 million and compensation for the affected users of $ 26 million. Although Robinhood has neither confirmed nor refuted the claims, the campaign should solve several compliance problems that the company has hindered.
JUST IN: ROBINHOOD AGREED TO PAY $29.75M TO SETTLE MULTIPLE FINRA PROBES OVER ITS SUPERVISION AND COMPLIANCE PRACTICES
— BSCN Headlines (@BSCNheadlines) March 10, 2025
Finra points to the risky Robinhood practice Hin
The decision was followed by the discovery of Finra that Robinhood has insufficiently had a suitable anti-money laundering system. Many dubious trade transactions and hacks from user accounts remained unnoticed.
It was also found that the platform failed to pursue influencers on social media that support their offers and to react to warnings of delays in transaction processing.
In addition, Robinhood users are also affected by the practice of “collaring” when trading, in which market orders canceled and then re -entered for investors less favorable prices.
SEC examination ends without further measures
In addition to the finra complaint, Robinhood also threatened enforcement measures by the Securities and Exchange Commission (SEC). The SEC warned in May that Robinhood could be fined because it does not list some crypto systems on its platform.
But finally the investigation was ended without further activities. The Chief Compliance Officer from Robinhood, Dan Gallagher, emphasized that the company always complies with the Federal Working Regulations and is certain that the claims are unfounded.
Massive Krypto-Expansion
Robinhood continues to expand its crypto business despite legal obstacles. Supported by the crypto-friendly Trump government, the company strives to attract additional institutional customers through the global development.
Last year, the purchase of BISTAMP worth $ 200 million fit perfectly in the large plan to improve the crypto trade offer.
As CNF reports, Robinhood wants to start with cryptododes in Singapore until the end of 2025. This step will take advantage of Bitstamp’s license, which was issued by the Monetary Authority of Singapore (MAS). Robinhood also intends to bring the trade with futures and options to Asia and Great Britain and thus expand its influence on a global market.
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