Robinhood Pays $45 Million to Resolve SEC Violations

The settlement addresses a broad range of regulatory failures, including recordkeeping, trade reporting, and cybersecurity lapses.

Robinhood agreed to pay $45 million in civil penalties to settle SEC charges involving two of its broker-dealers, Robinhood Securities LLC and Robinhood Financial LLC.
The violations included failures in reporting trading activity, maintaining records, addressing cybersecurity risks, and complying with short sale rules and identity theft protections.
The SEC found that Robinhood Securities submitted inaccurate electronic blue sheet data for over 392 million transactions across five years.
Both entities admitted to the findings, agreed to be censured, and committed to conducting internal audits on compliance with communication retention rules.
Robinhood stated that most of the issues were historical and had already been addressed, expressing a commitment to regulatory compliance and innovation moving forward.