Robinhood fined $45 million by the SEC for multiple securities violations

ChainCatcher news, according to an announcement from the U.S. Securities and Exchange Commission (SEC), Robinhood Securities LLC and Robinhood Financial LLC have agreed to pay a total of $45 million in civil penalties for violating more than 10 securities law provisions.

The violations include failing to timely submit suspicious activity reports, not implementing adequate identity theft protection measures, not addressing known cybersecurity vulnerabilities, and not properly maintaining customer communication records, among others.

Additionally, Robinhood Securities has been separately charged for failing to provide complete securities trading data and not complying with Reg SHO rules. These issues occurred between 2019 and 2023. The SEC stated that both companies have acknowledged some of the investigation findings and agreed to accept the penalties.