Robinhood broker-dealers paid $45 million for more than 10 separate securities-law violations
Company: Robinhood Markets, Inc.
Summary
The SEC announced in January 2025 that Robinhood Financial and Robinhood Securities agreed to pay $45 million in combined penalties to settle charges involving more than ten separate violations of federal securities laws. The SEC findings covered failures involving suspicious-activity reporting, identity-theft protection, cybersecurity, electronic blue-sheet submissions, Regulation SHO, brokerage recordkeeping, off-channel communications, retention of core operational databases, and preservation of customer communications. The order also addressed the November 2021 data-security incident and failures to adequately address known risks posed by remote-access vulnerabilities. Robinhood Financial and Robinhood Securities were censured, ordered to cease and desist, and required to undertake remediation. Primary sources: SEC administrative order: https://www.sec.gov/files/litigation/admin/2025/34-102170.pdf Robinhood 2025 Form 10-K: https://www.sec.gov/Archives/edgar/data/1783879/000178387926000029/hood-20251231.htm