Robinhood fined $45 million for messing up again… anyone surprised?

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.

For more details, here’s the link to the NYT article: Robinhood to Pay $45 Million Fine to Settle SEC Charges - The New York Times

Cy said:
Does the SEC even have the teeth to enforce these fines?

EDIT: Found this: https://www.reuters.com/legal/us-supreme-court-wont-hear-elon-musk-dispute-over-sec-settlement-2024-04-29/

Elon trying to throw his weight around, and SCOTUS reminding him he’s not untouchable.

@Keir
That article is from last year.

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.

Robinhood should be shut down for good. They’ve proven they can’t be trusted.

Avery said:
Robinhood should be shut down for good. They’ve proven they can’t be trusted.

I think it’s less about trust and more about incompetence. How are they still this bad after all these years?

@Finley
I think it’s intentional. They’ve repeatedly prioritized institutional traders over their regular users and profited off it.

Avery said:
@Finley
I think it’s intentional. They’ve repeatedly prioritized institutional traders over their regular users and profited off it.

There’s documented evidence of this happening, yet people still use them and the SEC barely does anything.

@Vega
Let me guess… is this ‘evidence’ something only you’ve seen?

Avery said:
Robinhood should be shut down for good. They’ve proven they can’t be trusted.

The name fits though… Robinhood. Robbing the hood.

Alex said:

Avery said:
Robinhood should be shut down for good. They’ve proven they can’t be trusted.

The name fits though… Robinhood. Robbing the hood.

Gotta give you credit for that one. Upvoted.