Robinhood has agreed to fork out $45 million to settle an investigation by the Securities and Exchange Commission over several alleged violations, reported the Wall Street Journal on Monday.
The settlement is being made via two of Robinhood’s brokerage units. One of the violations relates to Robinhood’s November 2021 confirmation that it 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 alleged that the two units covered by the settlement — Robinhood Securities and Robinhood Financial — did not “adopt sufficient policies and procedures to protect customer information,” reported the WSJ.
The Robinhood units also did not put a program in place to sufficiently protect customers against identity theft, the SEC also charged.