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

0 8

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) $ 64,431.26
ethereum
Ethereum (ETH) $ 3,445.81
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 573.90
solana
Solana (SOL) $ 157.90
usd-coin
USDC (USDC) $ 1.00
staked-ether
Lido Staked Ether (STETH) $ 3,451.41
xrp
XRP (XRP) $ 0.585694
the-open-network
Toncoin (TON) $ 7.40
dogecoin
Dogecoin (DOGE) $ 0.124414
cardano
Cardano (ADA) $ 0.44747
tron
TRON (TRX) $ 0.13414
shiba-inu
Shiba Inu (SHIB) $ 0.000019
avalanche-2
Avalanche (AVAX) $ 28.13
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 64,355.24
polkadot
Polkadot (DOT) $ 6.47
chainlink
Chainlink (LINK) $ 14.40
bitcoin-cash
Bitcoin Cash (BCH) $ 388.26
near
NEAR Protocol (NEAR) $ 6.23
uniswap
Uniswap (UNI) $ 8.21
litecoin
Litecoin (LTC) $ 73.84
leo-token
LEO Token (LEO) $ 5.83
dai
Dai (DAI) $ 1.00
matic-network
Polygon (MATIC) $ 0.545911
pepe
Pepe (PEPE) $ 0.000012
wrapped-eeth
Wrapped eETH (WEETH) $ 3,576.12
internet-computer
Internet Computer (ICP) $ 9.62
kaspa
Kaspa (KAS) $ 0.180704
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.45
ethereum-classic
Ethereum Classic (ETC) $ 23.70
ethena-usde
Ethena USDe (USDE) $ 1.00
aptos
Aptos (APT) $ 7.00
stellar
Stellar (XLM) $ 0.108583
monero
Monero (XMR) $ 161.57
blockstack
Stacks (STX) $ 1.89
hedera-hashgraph
Hedera (HBAR) $ 0.077261
maker
Maker (MKR) $ 2,928.45
vechain
VeChain (VET) $ 0.031929
okb
OKB (OKB) $ 42.90
cosmos
Cosmos Hub (ATOM) $ 6.55
render-token
Render (RNDR) $ 6.55
filecoin
Filecoin (FIL) $ 4.44
crypto-com-chain
Cronos (CRO) $ 0.094428
mantle
Mantle (MNT) $ 0.768227
arbitrum
Arbitrum (ARB) $ 0.756717
injective-protocol
Injective (INJ) $ 23.63
immutable-x
Immutable (IMX) $ 1.48
dogwifcoin
dogwifhat (WIF) $ 2.22
sui
Sui (SUI) $ 0.854339
bittensor
Bittensor (TAO) $ 294.76
the-graph
The Graph (GRT) $ 0.214167
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 3,480.40
optimism
Optimism (OP) $ 1.80
first-digital-usd
First Digital USD (FDUSD) $ 1.00
rocket-pool-eth
Rocket Pool ETH (RETH) $ 3,835.78
bonk
Bonk (BONK) $ 0.000027
arweave
Arweave (AR) $ 28.40
floki
FLOKI (FLOKI) $ 0.000188
mantle-staked-ether
Mantle Staked Ether (METH) $ 3,572.97
notcoin
Notcoin (NOT) $ 0.01627
lido-dao
Lido DAO (LDO) $ 1.80
ondo-finance
Ondo (ONDO) $ 1.08
aave
Aave (AAVE) $ 104.49
bitget-token
Bitget Token (BGB) $ 1.08
theta-token
Theta Network (THETA) $ 1.51
jasmycoin
JasmyCoin (JASMY) $ 0.030433
fantom
Fantom (FTM) $ 0.518467
whitebit
WhiteBIT Coin (WBT) $ 9.66
based-brett
Brett (BRETT) $ 0.138744
thorchain
THORChain (RUNE) $ 4.08
algorand
Algorand (ALGO) $ 0.159468
celestia
Celestia (TIA) $ 6.53
pyth-network
Pyth Network (PYTH) $ 0.340117
jupiter-exchange-solana
Jupiter (JUP) $ 0.882986
coredaoorg
Core (CORE) $ 1.32
ether-fi-staked-eth
ether.fi Staked ETH (EETH) $ 3,399.27
quant-network
Quant (QNT) $ 79.42
mantra-dao
MANTRA (OM) $ 1.38
sei-network
Sei (SEI) $ 0.351503
gatechain-token
Gate (GT) $ 7.71
elrond-erd-2
MultiversX (EGLD) $ 35.68
flow
Flow (FLOW) $ 0.618308
flare-networks
Flare (FLR) $ 0.021022
kucoin-shares
KuCoin (KCS) $ 9.69
eos
EOS (EOS) $ 0.597124
gala
GALA (GALA) $ 0.024376
axie-infinity
Axie Infinity (AXS) $ 5.95
bittorrent
BitTorrent (BTT) $ 0.00000091004383
beam-2
Beam (BEAM) $ 0.017407
bitcoin-sv
Bitcoin SV (BSV) $ 44.49
kelp-dao-restaked-eth
Kelp DAO Restaked ETH (RSETH) $ 3,496.91
ethereum-name-service
Ethereum Name Service (ENS) $ 27.24
tokenize-xchange
Tokenize Xchange (TKX) $ 10.77
dydx-chain
dYdX (DYDX) $ 1.42
akash-network
Akash Network (AKT) $ 3.54
msol
Marinade Staked SOL (MSOL) $ 189.23
popcat
Popcat (POPCAT) $ 0.845022
tezos
Tezos (XTZ) $ 0.820655
neo
NEO (NEO) $ 11.41
ethena
Ethena (ENA) $ 0.45918