Robinhood to Pay $45 Million SEC Settlement Over Data Breach, Other Violations

In Data Breach News, Legal News, News
January 14, 2025
Robinhood to Pay $45 Million SEC Settlement Over Data Breach, Other Violations

WSJ reports:

Two brokerage units of Robinhood Markets agreed to pay $45 million to settle an investigation by the Securities and Exchange Commission into a range of alleged violations, including one stemming from a 2021 data breach that exposed millions of customer names and emails. The settlement is the latest in a string of big penalties paid by Robinhood as it has grown from a disruptive startup into a more established financial firm. In the November 2021 breach, email addresses for about five million Robinhood users were exposed, as were the full names of a different group of about two million users, the Menlo Park, Calif.-based company said at the time.

The settlement is the latest in a string of big penalties paid by Robinhood as it has grown from a disruptive startup into a more established financial firm. Founded in 2013, the company pioneered the practice of zero-commission trading and drew millions of predominantly young customers to its innovative trading app, while repeatedly coming under scrutiny from regulators.

In the November 2021 breach, email addresses for about five million Robinhood users were exposed, as were the full names of a different group of about two million users, the Menlo Park, Calif.-based company said at the time. 

Read more at Yahoo!