June 14, 2021

Robinhood prepares to pay SEC $ 26.6 million in fine

Robinhood prepares to pay SEC $ 26.6 million in fine

Robinhood is in talks to pay a fine to settle investigations into the outage of the app for stock trading.

FINRA, SEC, New York Attorney General's Office andother regulators are investigating Robinhood's behavior in "displaying balances, customer purchasing power and its options trading approval processes."

The company said last year that it would revise its options trading methods following the suicide of one of its users.

An American married couple accused the broker ofdriving their 20-year-old son to commit suicide. The trader's nerves collapsed after receiving a notification about the negative balance of his account of $ 730,000. He tried to contact support. After several unsuccessful attempts, the guy decided to commit suicide. Later it turned out that the negative balance notification was erroneous, it was just a system bug.

Brokerage app Robinhood is once again at the center of a scandal, following a temporary trade restriction imposed during a sharp rally in some stocks earlier this year.

Broker's lawyers expect to close casesyou will need to pay at least $ 26.6 million in fines - a fairly modest amount considering that Robinhood makes hundreds of millions of dollars a year.

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