Robinhood agrees to pay $45 million in SEC settlement

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

Settlement is done through two brokerage divisions of Robinhood. One of the violations involved Robinhood November 2021 confirmation said it was hacked with “more than five million customer email addresses and two million customer names, as well as smaller, more specific customer information.”

The SEC alleged that the two divisions covered by the settlement, Robinhood Securities and Robinhood Financial, “failed to adopt adequate policies and procedures to protect customer information,” the WSJ reported.

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