The US regulator has announced a $10 million deal with Robinhood for failed investors.
The investigation examined complaints of system outages that caused users to miss transactions while most of Robinhood’s services were unavailable.
US Regulator Announces A Deal To Protect Investors
The California Department of Financial Protection and Innovation said the company behind cryptocurrency and stock trading platform Robinhood will likely pay more than $10 million in penalties for “operational and technical failures that hurt high-street investors.”
In an April 6 announcement, DFPI said the settlement was the result of an investigation conducted by the North American Securities Managers Association for up to $10.2 million in conjunction with securities regulators in Alabama, Colorado, California, Delaware, New Jersey, South Dakota and the United States.
.@RobinhoodApp faces multi-state settlement for operational & technical failures impacting investors, following a @NASAA investigation by 7 states. Robinhood has implemented recommendations from an independent consultant. More info: https://t.co/atk86Z0Xmk #Investing #Cryptonews pic.twitter.com/B5QWU0m3yq
— CA Department of Financial Protection & Innovation (@CaliforniaDFPI) April 6, 2023
The platform experienced a series of system outages in March 2020, causing users to miss transactions while most of its services were unavailable.
NASAA chief Andrew Hartnett said:
“Robinhood has repeatedly failed to serve its customers. However, this agreement makes it clear that Robinhood must take its customer service obligations seriously and correct these deficiencies.”
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