Robinhood (NASDAQ: HOOD) has been penalized by FINRA for allegations of certain regulatory transgressions.
According to the FINRA documents, Robinhood Securities must pay a fine of associated with a “failure to detect investigate, or report a wide variety of suspicious activity, including manipulative trading, suspicious money movements” and more. Without admitting or denying the claims Robinhood Securities has agreed top pay $26 million as well as interest.
A second FINRA action penalized Robinhood Financial for not accurately disclosing to customers a practice of collaring market orders by switching them to limit orders. The document states that 8.7 million collared orders did not execute due to these allegations. FINRA made other claims as well.
Again, without admitting or denying, Robinhood agreed to acceptance of a resolution that included a monetary penalty of $26 million plus interest and restitution.
The document also outlines allegations of shortfalls in compliance, including penalties.
Shares initially declined on the news in a volatile market.
In its monthly report, Robinhood said that Funded Customers at the end of February were 25.6 million , an increase of around 150,000.
Assets Under Custody (AUC) at the end of February were $187 billion a decrease of 8% from January 2025 but up 58% year-over-year.
Over the last twelve months, Net Deposits were $53.5 billion, translating to an annual growth rate of 45% relative to February 2024 AUC.
Robinhood claims over 25.6 million funded customers.
Robinhood hit a 52-week high in February of over $66/share. The shares currently trade at around $36.58/share.