Robinhood to pay record $70M to settle range of allegations

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Robinhood Financial will pay nearly $70m to settle a wide range of allegations, including that it gave customers misleading information and improperly allowed some users to make riskier trades after they lied about their trading experience.

FINRA said he was one of more than 800,000 customers that Robinhood allowed to make certain kinds of trades that could automatically trigger the use of borrowed money, even if they had turned off the ability to trade "On margin".

Vlad Tenev, chief executive officer and co-founder of Robinhood Markets Inc, testified virtually during a United States House Financial Services Committee hearing on February 18, 2021 about the GameStop saga In its settlement, Robinhood will pay a $57m fine and pay another $12.6m to thousands of its customers.

Last year, Robinhood agreed to pay $65m to settle accusations by the US Securities and Exchange Commission that it failed to disclose the full details of its dealings with high-speed traders and didn't get the best prices for customers trading on its app.

With its swelling ranks of oftentimes younger and more inexperienced customers, Robinhood has been a central player in the rising importance of smaller-pocketed investors on Wall Street.

Trading got so wild earlier this year that Robinhood and other brokerages temporarily blocked trading in GameStop and a handful of other stocks, raising the ire of many customers.

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