Share this article
Robinhood Pays SEC $65M to Settle Allegations It Misled Customers
Robinhood's commission-free trading model actually deprived customers of $34 million, the SEC alleged.
By Danny Nelson
Updated Sep 14, 2021, 10:44 a.m. Published Dec 17, 2020, 2:30 p.m.
The U.S. Securities and Exchange Commission (SEC) Thursday charged stock trading app Robinhood Financial with misleading customers on the source of its revenue and failing to secure them the best possible trades.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
- Robinhood, which offers commission-free trading, could afford to do so because its "largest revenue stream" came from the trading firms paying Robinhood to handle execution.
- This "payment for order flow" partnership was not disclosed to customers, SEC alleged. And it came at the cost of best execution.
- "The order finds that Robinhood provided inferior trade prices that in aggregate deprived customers of $34.1 million even after taking into account the savings from not paying a commission," the SEC said.
- Robinhood settled the SEC charges with a $65 million penalty.
- In a separate action Wednesday, Massachusetts state regulators hit Robinhood with allegations of "aggressive marketing" tactics.
See also: Robinhood Faces Legal Action from US Regulator Over ‘Aggressive Marketing’: WSJ
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
Больше для вас
DOT Sinks 2% After Breaking Key Support
The Polkadot token erased earlier gains amid elevated volume, falling from a high of $2.09 to $1.97.
Что нужно знать:
- DOT collapsed through ascending trendline support around the $2.05 level on a massive 284% volume surge.
- The token broke decisively below the support level to trade 2% lower over the last 24 hours.
Top Stories
