Robinhood agrees to pay $45M in SEC settlement

Robinhood has agreed to pay $45 million to settle an investigation by the Securities and Exchange Commission for several alleged violations, reported the Wall Street Journal on Monday.

The settlement is made through two brokerage units of Robinhood. One of the breaches concerns Robinhood’s Confirmation of November 2021 which was hacked “with more than five million customer email addresses and two million customer names taken, as well as a much smaller set of more specific customer data.”

The SEC said the two units covered by the settlement — Robinhood Securities and Robinhood Financial — did not “adopt sufficient policies and procedures to protect customer information,” the WSJ reported.

Robinhood units did not put a program in place to adequately protect customers against identity theft, the SEC also charged.