The crypto-friendly platform Robinhood is in talks with a number of regulators regarding a potential settlement of claims against them. The statement was made in a filing to the U.S. Securities and Exchange Commission (SEC).<\/p>\n
<\/p>\n
According to the document, the company is cooperating with the Financial Industry Regulatory Authority (FINRA), the SEC and the New York Attorney General.<\/p>\n
Robinhood plans to settle with FINRA \u201csome issues, including outages in March 2020 and the options trading.\u201d The company projected that any fines and penalties could total at least $26.6 million.<\/p>\n
\n\u201cHowever, we cannot predict whether these negotiations will lead to a resolution of the issues.\u201d<\/p>\n<\/blockquote>\n
In early March 2020 the Robinhood app was unavailable for about 17 hours amid high user activity during a short-term market rebound after its drop. The second outage occurred a few days later.<\/p>\n
In February 2021 a US couple criticized Robinhood’s options trading policy and accused the company<\/a> of driving their son to suicide. A trader died after receiving a notification of a negative balance of $730,000.<\/p>\n
The platform did not inform the user that there were options on his account that more than covered the liabilities. Later it lifted the restrictions.<\/p>\n
Earlier, Robinhood drew the attention of US authorities by suspending trading of some assets amid the GameStop stock pump<\/a>.<\/p>\n
\n