With the growing popularity of crypto assets in the US, it is now attracting the attention of government agencies. In the latest development, one of America’s most popular digital assets trading platforms, Robinhood, has been fined $70 million in a lawsuit over providing wrong information to investors and system outages.
The massive fine is now the largest-ever penalty by the American financial regulator. It added $13 million to the initial fine of $57 million to rehabilitate the users.
The agency, FINRA, said in a statement,
It had considered the widespread and significant harm suffered by customers, including millions of customers who received false or misleading information from [Robinhood], millions of customers affected by the firm’s systems outages in March 2020, and thousands of customers the firm approved to trade options even when it was not appropriate for the customers to do so.
GameStop Saga And Robinhood’s Rise
The popular trading platform made local and international headlines following the GameStop, which saw a historic rally, with its shares surging more than 1700 percent. In response, the platform halted gaming retailer’s stock trade.
Despite the allegations leveled by FINRA, the exchange is yet to issue any clarification to its users and clients. So far, it has neither rejected nor accepted the accusations.