NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

FINRA Orders Financial Penalties Against Robinhood

Published 07/01/2021, 08:51 AM
Updated 07/01/2021, 09:00 AM
FINRA Orders Financial Penalties Against Robinhood

  • FINRA orders Robinhood to pay about $70 million to users.
  • This is based on the results of an investigation into the stock and crypto trading app.

The U.S. Financial Industry Regulatory Authority (FINRA) orders Robinhood to pay about $70 million to users. This is based on the results of an investigation into the stock and crypto trading app.

According to Regulators, the trading app should pay restitution to users. For example, the 20-year-old who committed suicide after a negative error on his balance.

The news came on Wednesday. More so, FINRA stressed it had ordered Robinhood to pay $57 million in fines to the regulatory body. And also, to give about $12.6 million in restoration to some customers.

As per the FINRA announcement, the trading platform caused “widespread and significant harm” to many users. Also, it showed “systemic supervisory failures” from September 2016.

To address the matter...

This article was first published on coinquora.com

Continue reading on CoinQuora

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.