Robinhood is in trouble again, hit with $45 million in fines from the SEC. This time, it’s for stuff like not protecting customer data, employees using encrypted apps, sloppy bookkeeping, and failing to report shady transactions.
The SEC says these problems happened between 2019 and 2023. One example they gave was from November 2021 when a hacker got millions of email addresses and names of Robinhood users, along with some other account details. The SEC claims Robinhood knew about their weak security but didn’t fix it.
Why is it always cheaper for these companies to pay fines than to follow the rules? Just once, I’d like to see them fined more than they gained from their screw-ups.