BlockNews
FOLLOW ON X
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
Home CRYPTO

Robinhood Pays $7.5 Million in Landmark Settlement Over Illegal Trading Practices

by Conie
January 25, 2024
in CRYPTO
Reading Time: 3 mins read
A A
1
SHARES
16
VIEWS
Share on XShare in TelegramShare on Reddit
  • Robinhood agreed to pay $7.5 million and cease using celebratory imagery to settle an enforcement action brought by Massachusetts for allegedly “gamifying” stock trading.
  • The state claimed Robinhood marketed itself like a game where users could win prizes through frequent trading.
  • The settlement ends a years-long dispute over Robinhood’s digital engagement practices, which have faced increased regulatory scrutiny for exploiting inexperienced investors.

Robinhood Financial has agreed to pay a $7.5 million penalty as part of a settlement for an enforcement action brought by the Massachusetts Securities Division. Secretary William Galvin brought the enforcement action in December 2020 claiming that Robinhood marketed itself as some sort of game that you might be able to win.

Background on the Enforcement Action

In December 2020, Galvin filed a complaint alleging that Robinhood had “gamified” stock trading on its platform. The complaint proposed revoking the firm’s broker-dealer license in Massachusetts. Galvin claimed Robinhood marketed itself as a game where users could win prizes through frequent trading.

Details of the Settlement

Under the settlement, Robinhood agreed to pay a $7.5 million fine. The firm also agreed to cease using celebratory imagery tied to frequent trading and to add disclosures about its digital engagement practices. Additionally, Robinhood must hire an independent compliance consultant to evaluate its remaining digital engagement tactics.

Robinhood’s Response

Robinhood said the settlement resolves historical issues from 2021 that do not reflect the company today. While it rejected the gamification allegations, Robinhood said it has taken steps to improve cybersecurity since the original complaint.

JUST IN: Robinhood settles with Massachusetts' securities regulator for $7.5 million following allegations of targeting inexperienced investors

— BlockNews.com (@blocknewsdotcom) January 18, 2024

Regulatory Scrutiny of Robinhood

The settlement concludes a three-year legal battle between Robinhood and Massachusetts regulators. In 2021, the Financial Industry Regulatory Authority fined Robinhood $70 million for harming thousands of users. Robinhood has also reached settlements this year with securities regulators in multiple states over allegations of failing its clients.

Conclusion

The settlement requires Robinhood to change its digital engagement practices in Massachusetts. While Robinhood says it has evolved since the original allegations, the enforcement action highlights regulators’ increased scrutiny of practices seen as exploiting inexperienced investors. The settlement resolves a long-running dispute between the trading app and Massachusetts authorities.

Tags: BitcoincryptoRobinhood
TweetShareShare
Previous Post

Tether Bolsters Crypto Clout with Massive $380 Million Bitcoin Purchase

Next Post

Bitcoin Dumped 12% This Week and Here is Why

DON'T MISS THESE! HOT OFF THE PRESS

Litecoin Jumps 10%—Can a $100M Bet From a Biotech Company Kick Off a Bigger Rally?
CRYPTO

Litecoin Jumps 10%—Can a $100M Bet From a Biotech Company Kick Off a Bigger Rally?

July 18, 2025
Here’s Why Dogecoin’s Jumping Again Today
CRYPTO

Here’s Why Dogecoin’s Jumping Again Today

July 18, 2025
PEPE’s Making Noise, But Is RTX the Sleeper Hit of 2025?
CRYPTO

PEPE’s Making Noise, But Is RTX the Sleeper Hit of 2025?

July 18, 2025
Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth
CRYPTO

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth

July 18, 2025
President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance
CRYPTO

President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance

July 18, 2025
President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing
CRYPTO

President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing

July 18, 2025
Load More

Related News

Litecoin Jumps 10%—Can a $100M Bet From a Biotech Company Kick Off a Bigger Rally?

Litecoin Jumps 10%—Can a $100M Bet From a Biotech Company Kick Off a Bigger Rally?

July 18, 2025
Here’s Why Dogecoin’s Jumping Again Today

Here’s Why Dogecoin’s Jumping Again Today

July 18, 2025
PEPE’s Making Noise, But Is RTX the Sleeper Hit of 2025?

PEPE’s Making Noise, But Is RTX the Sleeper Hit of 2025?

July 18, 2025
Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth

July 18, 2025
President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance

President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance

July 18, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano Chainlink China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve Finance FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin Web3 X xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • HOME
  • CRYPTO
  • MEMECOINS
  • TECHNOLOGY
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.