{"id":7573,"date":"2025-01-14T12:49:25","date_gmt":"2025-01-14T12:49:25","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=7573"},"modified":"2025-01-14T12:49:25","modified_gmt":"2025-01-14T12:49:25","slug":"robinhood-settles-with-sec-for-45m-over-securities-law-violations","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=7573","title":{"rendered":"Robinhood Settles With SEC For $45M Over Securities Law Violations"},"content":{"rendered":"<div>\n<p><span data-preserver-spaces=\"true\">Robinhood, the popular online brokerage platform, has agreed to pay a $45 million settlement to the US Securities and Exchange Commission (SEC) following allegations of violating over ten securities law provisions.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The<\/span><span data-preserver-spaces=\"true\"> settlement affects Robinhood\u2019s broker-dealer subsidiaries, Robinhood Securities LLC and Robinhood Financial LLC<\/span><span data-preserver-spaces=\"true\">, according to <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.sec.gov\/newsroom\/press-releases\/2025-5\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">a 13 January 2025\u00a0 press release from the SEC<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> Per the statement, the SEC\u2019s investigation found that the Robinhood entities failed to comply with a range of regulatory requirements. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Violations included inaccurate reporting of trading activity, failure to comply with short sale rules, untimely filing of suspicious activity reports, inadequate record-keeping, and insufficient safeguards for customer information.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">EXPLORE: <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/99bitcoins.com\/bitcoin-exchanges\/robinhood-review\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Robinhood Review \u2013 Is it Safe to Use? (2025 Updated)<\/span><\/a><\/strong><\/p>\n<h2><span data-preserver-spaces=\"true\">Robinhood Missed Customer Communications From 2020-2021<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">A key finding was Robinhood\u2019s failure to maintain and preserve customer electronic communications between 2020 and 2021. Additionally, the SEC noted that the company submitted over 11,849 inaccurate or incomplete Electronic Blue Sheets (EBS), leading to errors in the reporting of approximately 392 million transactions.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The SEC also cited Robinhood for not reporting suspicious activity <\/span><span data-preserver-spaces=\"true\">in a timely manner<\/span><span data-preserver-spaces=\"true\"> between January 2020 and March 2022 and for insufficient identity theft protection measures from April 2019 to July 2022. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">From December 2019 to May 2022, the company <\/span><span data-preserver-spaces=\"true\">also<\/span><span data-preserver-spaces=\"true\"> failed to comply with Regulation SHO, which regulates short-selling practices. Furthermore, a cybersecurity vulnerability in 2021 allowed unauthorized access to information related to millions of customers.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">BREAKING NEWS:<br \/>JAN 13, 2025 <br \/>SEC Robinhood Naked Short Selling<\/p>\n<p>&#8220;Dec 2019 \u2013 Dec 2023, Robinhood mismarked more than 15 million principal short sales as \u201clong.\u201d<\/p>\n<p>\u2026did not comply w\/ locate reqs for any\u2026mismarked Fractional Trading &amp; Recurring Orders principal short sale orders&#8221; <a href=\"https:\/\/t.co\/CJd4bk6vyz\">pic.twitter.com\/CJd4bk6vyz<\/a><\/p>\n<p>\u2014 ringingbells (@u_ringingbells) <a href=\"https:\/\/twitter.com\/u_ringingbells\/status\/1878993574110625806?ref_src=twsrc%5Etfw\">January 14, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span data-preserver-spaces=\"true\">Robinhood Securities will pay $33.5 million of the penalty, while Robinhood Financial will pay $11.5 million. Both payments are due by 27 January 2025, and the firms agreed to be censured as part of the settlement.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Despite the settlement, Robinhood\u2019s stock (HOOD) saw minimal impact<\/span><span data-preserver-spaces=\"true\">, closing<\/span><span data-preserver-spaces=\"true\"> at $39.59 on Jan. 13, down 1.22%, and <\/span><span data-preserver-spaces=\"true\">recovering<\/span><span data-preserver-spaces=\"true\"> slightly in after-hours trading.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The violations\u2019 connection to Robinhood\u2019s crypto operations remains unclear, though the company previously settled for $3.9 million with California regulators in September over customer withdrawal issues. Robinhood did not admit or deny wrongdoing in either case.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Meanwhile, Robinhood\u2019s crypto trading volume and revenue surged in the third quarter, with trading volume up 112% year-over-year to $14.4 billion, revenue up 165% to $61 million, and crypto assets under custody increasing 32.3% to $19.5 billion.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">EXPLORE:\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/99bitcoins.com\/analysis\/crypto-forecast-best-crypto\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">10 Coins with High Returns: Crypto Forecast 2025<\/span><\/a><\/strong><\/p>\n<h2><span data-preserver-spaces=\"true\">SEC Faces Leadership Change<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The SEC faces leadership changes as Gensler announced plans to step down on January 20, and Commissioner Jaime Liz\u00e1rraga is also set to leave before Trump\u2019s inauguration.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Meanwhile, Donald Trump has\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/99bitcoins.com\/news\/donald-trump-picks-crypto-ally-paul-atkins-as-next-sec-chair\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">selected Paul Atkins<\/span><\/a><span data-preserver-spaces=\"true\">, a crypto advocate and former SEC commissioner,\u00a0<\/span><span data-preserver-spaces=\"true\">as his\u00a0choice<\/span><span data-preserver-spaces=\"true\"> to lead the SEC.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">He <\/span><span data-preserver-spaces=\"true\">has also<\/span><span data-preserver-spaces=\"true\">\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/99bitcoins.com\/news\/trump-appoints-former-paypal-chief-as-ai-and-crypto-policy-advisor\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">appointed\u00a0David Sachs<\/span><\/a><span data-preserver-spaces=\"true\">, a podcaster,\u00a0as the \u201cCrypto Czar\u201d in his cabinet. He\u00a0also\u00a0pledged to make America the \u201ccrypto capital of the world\u201d through initiatives like World Liberty\u2019s lending and borrowing platform.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">As reported, the SEC\u00a0<\/span><span data-preserver-spaces=\"true\">has<\/span><span data-preserver-spaces=\"true\">\u00a0<\/span><span data-preserver-spaces=\"true\">taken<\/span><span data-preserver-spaces=\"true\">\u00a0a\u00a0tougher\u00a0stance against crypto firms in 2024.<\/span><span data-preserver-spaces=\"true\">\u00a0More specifically, the regulator\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/99bitcoins.com\/news\/sec-hit-crypto-firms-with-4-7-billion-in-enforcement-actions-in-2024-over-3000-surge-from-2023\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">imposed nearly $4.7 billion<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0in enforcement actions against crypto companies, a 3,018% increase from 2023.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">EXPLORE:\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/new-coinbase-listings\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">15 New &amp; Upcoming Coinbase Listings to Watch in 2025<\/span><\/a><\/strong><\/p>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/robinhood-settles-with-sec-for-45m-over-securities-law-violations\/\">Robinhood Settles With SEC For $45M Over Securities Law Violations<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Robinhood, the popular online brokerage platform, has agreed to pay a $45 million settlement to the US Securities and Exchange Commission (SEC) following allegations of violating over ten securities law provisions. The settlement affects Robinhood\u2019s broker-dealer subsidiaries, Robinhood Securities LLC and Robinhood Financial LLC, according to a 13 January 2025\u00a0 press release from the SEC. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-7573","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/7573","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7573"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/7573\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7573"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7573"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7573"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}