▶️The U.S. Securities and Exchange Commission (SEC) accuses Robinhood of violating numerous securities regulations. To date, the legal battle seems to have been settled, with the SEC forcing two Robinhood brokerage units to pay a total of $45 million in fines.

Accordingly, Robinhood Securities LLC and Robinhood Financial LLC are being prosecuted for more than 10 offenses related to brokerage activities, including:

➕Failing to timely report suspicious transactions;

➕Lacking effective identity protection measures;

➕Failing to prevent unauthorized access to Robinhood's computer systems.

Additionally, the SEC also discovered that these two companies:

➕Failed to properly maintain and preserve electronic communication information;

➕Did not store copies of operational databases;

➕Did not maintain certain communications with customers as required by law during the 2020-2021 period.

➡️The SEC indicated that Robinhood Securities failed to provide complete and accurate securities transaction information (also known as blue sheet EBS data) for over 5 years.

▶️According to the SEC's published order, during the period related to EBS, Robinhood Securities submitted at least 11,849 EBS data submissions that contained inaccurate or incomplete information due to 11 different types of errors. These negligence issues led to reporting incorrect data for at least 392 million transactions.

▶️The SEC emphasized that Robinhood's prolonged violations severely impacted the oversight of financial markets while warning other brokerage firms about the importance of legal compliance. With a $45 million fine, Robinhood once again faces pressure to improve its operational processes and compliance with regulations, as well as to maintain investor trust.