Robinhood has agreed to pay a $29.75 million fine to FINRA for failing to meet supervision requirements. This is another case of the company being held accountable by financial regulators.
FINRA's Settlement and Reasons
On March 7, 2025, FINRA announced that Robinhood would pay $29.75 million, including a $26 million civil penalty and approximately $3.75 million in customer restitution. It was found that the company failed to address red flags of potential misconduct, leading to imposed charges. Notably, neither Robinhood Securities nor Robinhood Financial tracked suspicious money movements or hacked user accounts.
Other Fines on Robinhood
In early January 2025, the U.S. Securities and Exchange Commission received a $45 million fine from Robinhood Financial and Robinhood Securities to settle multiple misconduct allegations. Following ongoing allegations, Robinhood's stock continued to fall.
Current Market Situation and Robinhood Stock
Robinhood's stock was $44.42 at the time of writing, declining 18% weekly. Over half a year, Robinhood stock is down 127% but grew around 12.63%. Chief Brokerage Officer Steven Quirks sold 14,279 shares of Class A at an average price of $45.26. Since the beginning of the year, Robinhood's market capitalization has grown by 14.03% to $39.33 billion.
This incident highlights the importance of strict adherence to regulations to avoid significant penalties and maintain client trust.
