Robinhood Signage Logo on Top of Glass Building. Source: Askar - stock.adobe.com

Key Takeaways:

Robinhood Fined $29.75M – The company settled FINRA investigations over compliance failures, including AML violations, poor trade supervision, and misleading communications.
Supervision Issues – Regulators found Robinhood failed to address suspicious trading, compromised accounts, and identity verification lapses.
Continued Regulatory Scrutiny – The settlement follows a $45M SEC fine in January, despite Robinhood reporting record Q4 2024 financial performance.

Robinhood has agreed to pay $29.75 million in fines and restitution to settle investigations by the Financial Industry Regulatory Authority (FINRA) over compliance and supervision failures.

The settlement includes a $26 million fine and $3.75 million in restitution to affected customers.

🚨JUST IN: ROBINHOOD AGREED TO PAY $29.75M TO SETTLE MULTIPLE FINRA PROBES OVER ITS SUPERVISION AND COMPLIANCE PRACTICES
— BSCN Headlines (@BSCNheadlines) March 10, 2025

FINRA found that Robinhood failed to address warning signs of misconduct, violating anti-money laundering (AML) regulations, trade supervision rules, and customer disclosure requirements.

The company did not properly monitor its clearing system, leading to processing delays during the trading frenzy between March 2020 and January 2021, which included GameStop (GME) and AMC (AMC) trading restrictions.

Additionally, Robinhood failed to detect and report suspicious activities, such as unusual money transfers and hacked accounts.

The company also opened thousands of accounts without proper identity verification, violating AML rules.

FINRA flagged misleading marketing from social media influencers promoting Robinhood.

The restitution was imposed for altering market orders into limit orders without clearly informing customers.

Robinhood previously settled a $45 million case with the SEC in January 2024 over securities law violations.

Despite regulatory challenges, Robinhood reported a record Q4 2024, with $1 billion in revenue and $358 million from crypto trading, a 200% increase year-over-year.