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FINRA orders Robinhood to pay $70M due in part to 'significant harm' platform caused users

Published 06/30/2021, 01:45 PM
Updated 06/30/2021, 03:40 PM
FINRA orders Robinhood to pay $70M due in part to 'significant harm' platform caused users

The U.S. Financial Industry Regulatory Authority is penalizing Robinhood to the tune of roughly $70 million based on the results of an investigation into the stock and cryptocurrency trading app.

In a Wednesday announcement, the Financial Industry Regulatory Authority, or FINRA, said it had ordered Robinhood to pay $57 million in fines to the regulatory body as well as provide roughly $12.6 million in restitution to certain customers. FINRA alleged the trading platform caused “widespread and significant harm” to thousands of users and exhibited “systemic supervisory failures” starting as early as September 2016.

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