Robinhood Resolves Securities Enforcement Action with $7.5M Settlement
Summary:
Robinhood, a cryptocurrency and stock trading app, has reportedly settled an enforcement action by Massachusetts' securities regulator, agreeing to pay a $7.5 million fine. Accused of gamifying trading and targeting inexperienced investors, this resolution closes a nearly three-year legal dispute and sees the firm remaining committed to its Massachusetts customers.
The Massachusetts securities regulator's enforcement action launched in December 2020 against Robinhood, a popular app for trading stocks and cryptocurrencies, has been reportedly settled. As per a Reuters report on January 18, Robinhood conceded to pay a fine of $7.5 million for allegedly engaging inexperienced investors in what appeared to be a game-like trading of stocks and cryptos. Massachusetts' Secretary of State William Galvin accused Robinhood of misrepresenting itself as some sort of winnable game, suggested that the company's broker-dealer license in the state be nullified. "The settlement rectifies historical issues stretching back to 2021 that fail to represent the current Robinhood," said Lucas Moskowitz, Robinhood's Deputy General Counsel and Head of Government Affairs, while speaking to Cointelegraph. He added, "We are happy to close this chapter and continue with our dedication to guarantee our Massachusetts-based users access to the markets." This settlement brings an end to the roughly three-year-long legal dispute between the trading platform and the State of Massachusetts. As and when more information arrives, this developing story will be updated.
Published At
1/18/2024 8:54:21 PM
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