- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2024-01-18T20:54:00
Online stock trading platform and broker-dealer Robinhood Financial agreed to pay a $7.5 million fine as part of a settlement with the Commonwealth of Massachusetts addressing claims related to “gamification” of its platform and cybersecurity issues that lent to a 2021 data breach.
The agreement, announced Thursday, resolves administrative complaints filed against Robinhood in 2020 and 2021. The company began facing a surge of scrutiny regarding its practices early on during the Covid-19 pandemic, when the platform’s popularity increased.
Massachusetts securities regulators took issue with game-like features on the Robinhood platform to encourage engagement, including the use of confetti animations, digital scratch tickets, and free stock rewards. It faulted the company for not implementing procedures reasonably designed to supervise the features in a manner necessary to protect customers.
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Online brokerage Robinhood Markets disclosed in a quarterly filing it is under investigation regarding the quality of its brokerage execution.
Online stock trading platform and broker-dealer Robinhood Financial moved closer to paying $20 million as part of a class-action settlement with thousands of customers whose accounts were allegedly accessed by unauthorized users.
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