Robinhood agrees to pay $45M in SEC settlement

Robinhood has agreed to pay $45 million to settle an investigation by the Securities and Exchange Commission into several alleged violations, reported to the Wall Street Journal on Monday.

The settlement is made through two Robinhood brokerage units. One of the breaches concerns Robinhood’s Confirmation in November 2021 that it was hacked “with more than five million customer email addresses and two million customer names, as well as a much smaller set of more specific customer data.”

The SEC alleged that the two units covered by the settlement — Robinhood Securities and Robinhood Financial — did not “adopt sufficient policies and procedures to protect customer information,” the WSJ reported.

Robinhood’s units also failed to establish a program to adequately protect customers from identity theft, the SEC also charged.