- Robinhood agreed to pay $29.75M to settle multiple FINRA probes over compliance failures, including anti-money laundering issues and delayed transaction processing.
- The SEC closed its investigation into Robinhood’s crypto asset listings without enforcement action, confirming the company’s compliance with federal securities laws.
Robinhood Markets has agreed to pay $29.75 million to settle numerous FINRA probes. The settlement covers a $3.75 million civil penalty as well as reimbursement to impacted users totaling $26 million. Although Robinhood has neither acknowledged nor refuted the claims, the action is meant to solve multiple compliance problems that have hampered the company.
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 Flags Robinhood’s Risky Practices
The ruling followed FINRA’s discovery of Robinhood’s inadequate implementation of a suitable anti-money laundering system. Many dubious trading operations and user account hacks remained unnoticed.
The platform also proved to have neglected to track social media influencers endorsing its offerings and to react to alerts regarding transaction processing delays.
Not only that, Robinhood users are also affected by the practice of “collaring” in trading, where market orders are canceled and then re-entered at prices that are less favorable to investors.
SEC Investigation Ends Without Action
Apart from the FINRA complaint, Robinhood has also encountered threats from the Securities and Exchange Commission (SEC) concerning enforcement action. The SEC cautioned in May that Robinhood might be fined for not listing some crypto assets on its platform.
But finally the inquiry was ended without any more activity. The Chief Compliance Officer of Robinhood, Dan Gallagher, underlined that the company always respects federal securities rules and is certain the claims are unfounded.
Massive Crypto Expansion
Robinhood keeps rapidly growing its crypto business even while it faces legal obstacles. Supported by the pro-crypto Trump government, the corporation is driven to draw additional institutional clients via worldwide development.
Last year, their $200 million purchase of Bitstamp fit perfectly with their great plan to improve its crypto trading offerings.
CNF previously reported that by the end of 2025, Robinhood plans to launch crypto services in Singapore. This move will take advantage of Bitstamp’s license, issued by the Monetary Authority of Singapore (MAS). Robinhood also intends to bring futures and options trading to Asia and the UK, therefore broadening its influence on a global market.
