Robinhood has agreed to pay fines of $45mn to cover data breach and record-keeping failures — one of a series of penalties levied by US regulators o

Robinhood pays biggest fine among more than $100mn imposed by SEC

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2025-01-14 01:00:03

Robinhood has agreed to pay fines of $45mn to cover data breach and record-keeping failures — one of a series of penalties levied by US regulators on Monday against financial firms, including units of Blackstone and KKR.

The online broker paid the biggest penalty in a group of settlements announced by the Securities and Exchange Commission that totalled more than $100mn in fines.

Robinhood’s failures included a 2021 data breach that exposed millions of customers’ email addresses and names as well as record-keeping issues including failures to properly record its positions involving fractional share trades — a popular service among younger, less affluent traders.

The $45mn payout comes with the broker poised to record a fifth consecutive quarter of profitability. In the three months to September, Robinhood reported net income of $150mn.

“We are well-positioned to continue leading the industry in developing the innovative products and services our customers want and need,” Lucas Moskowitz, Robinhood’s general counsel, said in a statement. “We look forward to working with the SEC under a new administration.”