Crypto-Friendly Trading Giant Robinhood To Pay Up to $10,200,000 to US Regulators Over 2020 Platform Outages

0 5

knife

Trading giant Robinhood will pay up to $10.2 million to multiple state regulatory agencies in a settlement over issues that caused the platform to temporarily go out in 2020.

In a new press release, the North American Securities Administrators Association (NASAA), an international organization that aims to protect investors from fraud, says Robinhood will pay up to $10.2 million in penalties for “operational and technical failures that harmed main street investors.”

The NASAA, which launched an investigation into Robinhood after its March 2020 outages alongside state securities regulators from Alabama, Colorado, California, Delaware, New Jersey, South Dakota, and Texas, found that the trading platform had numerous deficiencies.

The order found the following violations at the time, according to the press release:

  • “Negligent dissemination of inaccurate information to customers, including regarding margin and risk associated with multi-leg option spreads.
  • Failure to have a reasonably designed customer identification program.
  • Failure to supervise technology critical to providing customers with core broker-dealer services.
  • Failure to have a reasonably designed system for dealing with customer inquiries.
  • Failure to exercise due diligence before approving certain option accounts.
  • Failure to report all customer complaints to FINRA [Financial Industry Regulatory Authority] and state securities regulators, as may be required.”

Though Robinhood will pay the penalty, the firm has neither admitted nor denied the findings.

Robinhood will also retain an independent compliance consultant and provide access to a FINRA-ordered compliance report to settling states. In a year, the trading giant will confirm to Alabama, the leading state, that it has complied with the recommendations of the consultant or taken steps to effectively address the recommendations, according to the press release.

Recently, the crypto-friendly trading platform announced that it’s launching a new crypto wallet on Apple’s mobile operating system with support for popular digital assets such as meme token Shiba Inu (SHIB), top altcoin Ethereum (ETH), and layer-2 scaling solution Polygon (MATIC).

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox



Check Price Action



Follow us on Twitter, Facebook and Telegram



Surf The Daily Hodl Mix


Check Latest News Headlines

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Anastelfy

The post Crypto-Friendly Trading Giant Robinhood To Pay Up to $10,200,000 to US Regulators Over 2020 Platform Outages appeared first on The Daily Hodl.

Leave A Reply

Your email address will not be published.

bitcoin
Bitcoin (BTC) $ 51,202.72
ethereum
Ethereum (ETH) $ 3,064.64
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 387.98
solana
Solana (SOL) $ 102.11
staked-ether
Lido Staked Ether (STETH) $ 3,059.51
xrp
XRP (XRP) $ 0.535999
usd-coin
USDC (USDC) $ 1.00
cardano
Cardano (ADA) $ 0.578898
avalanche-2
Avalanche (AVAX) $ 36.77
dogecoin
Dogecoin (DOGE) $ 0.084821
tron
TRON (TRX) $ 0.137932
chainlink
Chainlink (LINK) $ 18.26
polkadot
Polkadot (DOT) $ 7.68
matic-network
Polygon (MATIC) $ 0.993045
uniswap
Uniswap (UNI) $ 10.65
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 51,312.75
the-open-network
Toncoin (TON) $ 2.13
internet-computer
Internet Computer (ICP) $ 12.26
shiba-inu
Shiba Inu (SHIB) $ 0.00001
bitcoin-cash
Bitcoin Cash (BCH) $ 264.17
litecoin
Litecoin (LTC) $ 69.69
dai
Dai (DAI) $ 1.00
immutable-x
Immutable (IMX) $ 3.19
filecoin
Filecoin (FIL) $ 7.89
cosmos
Cosmos Hub (ATOM) $ 10.41
leo-token
LEO Token (LEO) $ 4.18
near
NEAR Protocol (NEAR) $ 3.72
ethereum-classic
Ethereum Classic (ETC) $ 26.96
kaspa
Kaspa (KAS) $ 0.16301
bittensor
Bittensor (TAO) $ 579.78
blockstack
Stacks (STX) $ 2.48
optimism
Optimism (OP) $ 3.72
hedera-hashgraph
Hedera (HBAR) $ 0.104506
aptos
Aptos (APT) $ 9.46
vechain
VeChain (VET) $ 0.04711
first-digital-usd
First Digital USD (FDUSD) $ 0.999967
stellar
Stellar (XLM) $ 0.114765
injective-protocol
Injective (INJ) $ 35.61
okb
OKB (OKB) $ 50.02
lido-dao
Lido DAO (LDO) $ 3.35
mantle
Mantle (MNT) $ 0.903694
celestia
Celestia (TIA) $ 16.49
the-graph
The Graph (GRT) $ 0.295373
render-token
Render (RNDR) $ 7.26
crypto-com-chain
Cronos (CRO) $ 0.092837
monero
Monero (XMR) $ 128.68
arbitrum
Arbitrum (ARB) $ 1.82
sei-network
Sei (SEI) $ 0.800331
maker
Maker (MKR) $ 2,064.31
rocket-pool-eth
Rocket Pool ETH (RETH) $ 3,371.43
sui
Sui (SUI) $ 1.60
beam-2
Beam (BEAM) $ 0.03255
thorchain
THORChain (RUNE) $ 5.41
algorand
Algorand (ALGO) $ 0.199428
mantle-staked-ether
Mantle Staked Ether (METH) $ 3,128.26
flare-networks
Flare (FLR) $ 0.046363
elrond-erd-2
MultiversX (EGLD) $ 57.90
quant-network
Quant (QNT) $ 104.91
flow
Flow (FLOW) $ 0.998154
aave
Aave (AAVE) $ 99.95
bitcoin-sv
Bitcoin SV (BSV) $ 73.85
dydx-chain
dYdX (DYDX) $ 3.39
theta-token
Theta Network (THETA) $ 1.41
bitget-token
Bitget Token (BGB) $ 0.990159
starknet
Starknet (STRK) $ 1.89
mina-protocol
Mina Protocol (MINA) $ 1.26
ordinals
ORDI (ORDI) $ 63.25
havven
Synthetix Network (SNX) $ 3.99
true-usd
TrueUSD (TUSD) $ 0.974325
tokenize-xchange
Tokenize Xchange (TKX) $ 15.54
worldcoin-wld
Worldcoin (WLD) $ 8.81
helium
Helium (HNT) $ 8.31
chiliz
Chiliz (CHZ) $ 0.133438
the-sandbox
The Sandbox (SAND) $ 0.525319
apecoin
ApeCoin (APE) $ 1.95
fantom
Fantom (FTM) $ 0.416468
axie-infinity
Axie Infinity (AXS) $ 8.25
gala
GALA (GALA) $ 0.03315
fetch-ai
Fetch.ai (FET) $ 1.07
blur
Blur (BLUR) $ 0.73059
whitebit
WhiteBIT Coin (WBT) $ 7.13
kucoin-shares
KuCoin (KCS) $ 10.58
dydx
dYdX (ETHDYDX) $ 3.39
bittorrent
BitTorrent (BTT) $ 0.000001
arweave
Arweave (AR) $ 15.34
cheelee
Cheelee (CHEEL) $ 18.53
osmosis
Osmosis (OSMO) $ 1.56
tezos
Tezos (XTZ) $ 1.10
sats-ordinals
SATS (Ordinals) (SATS) $ 0.00000046152366
decentraland
Decentraland (MANA) $ 0.521896
frax-ether
Frax Ether (FRXETH) $ 3,051.85
singularitynet
SingularityNET (AGIX) $ 0.731175
woo-network
WOO (WOO) $ 0.498937
conflux-token
Conflux (CFX) $ 0.242771
akash-network
Akash Network (AKT) $ 3.96
dymension
Dymension (DYM) $ 6.17
ronin
Ronin (RON) $ 2.99
eos
EOS (EOS) $ 0.782212
astar
Astar (ASTR) $ 0.160223