Massachusetts Secretary William Galvin brought the enforcement action in December 2020, claiming that Robinhood marketed itself as “some sort of game that you might be able to win.”
Cryptocurrency and stock trading app Robinhood has resolved an enforcement action first brought by Massachusetts’ securities regulator in December 2020.
According to a Jan. 18 announcement from Secretary of the Commonwealth of Massachusetts William Galvin, Robinhood agreed to pay a $7.5-million penalty and “overhaul its digital engagement practices” for targeting inexperienced investors in what many described as the “gamification” of trading crypto and stocks. Galvin claimed in the original complaint that Robinhood had marketed itself as “some sort of game that you might be able to win,” proposing revoking the firm’s broker-dealer license in the state.
“This settlement resolves historical matters dating back to 2021 that do not reflect Robinhood today,” Lucas Moskowitz, deputy general counsel and head of government affairs at Robinhood, told Cointelegraph. “We are pleased to put this matter behind us and move forward steadfast in our commitment to providing access to the markets for our Massachusetts customers.”
