Robinhood trading app got $ 70 million penalty for "misleading" customers

Robinhood trading app got $ 70 million penalty for "misleading" customers

Robinhood, the retail platform at the center of the GameStop meme saga, has been fined $ 70 million by the financial industry regulator, albeit for reasons unrelated to GameStop . FINRA has ordered Robinhood owners to pay a $ 57 million fine and $ 12.6 million plus interest on restitution to its customers for what it calls "systemic oversight failures and significant damages."

The Robinhood trading app benefited from the rise in retail popularity during the Covid-19 pandemic and the associated rise in meme stock trading organized by communities of speculators such as the WallStreetBets subreddit. Between March last year and now it has gone from 13 million users to 31 million.

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