Robinhood has agreed to fork out $45 million to settle an investigation by the Securities and Exchange Commission over a number of alleged violations, reported the Wall Street Journal on Monday.
The settlement is being made through two of Robinhood’s brokerage models. One of the violations pertains to Robinhood’s November 2021 affirmation that it was hacked “with greater than 5 million buyer electronic mail addresses and two million buyer names taken, in addition to a a lot smaller set of extra particular buyer information.”
The SEC alleged that the 2 models lined by the settlement — Robinhood Securities and Robinhood Financial — didn’t “undertake enough insurance policies and procedures to guard buyer data,” reported the WSJ.
The Robinhood models additionally didn’t put a program in place to sufficiently shield clients in opposition to identification theft, the SEC additionally charged.
