Robinhood Securities LLC and Robinhood Financial LLC , the popular trading platforms under the Robinhood umbrella, have found themselves in the spotlight once again—but this time, not for their innovation. The U.S. Securities and Exchange Commission (SEC) has charged the broker-dealers with a laundry list of securities law violations, resulting in a hefty $45 million penalty . What Led to the Charges? The SEC’s investigation uncovered a series of regulatory missteps between 2019 and 2023 , highlighting Robinhood’s failure to meet legal obligations in key areas: Suspicious Activity Reporting Robinhood did not file timely reports for suspicious transactions, undermining market transparency. Data and Recordkeeping Failures Critical customer communications and operational databases were not properly preserved, violating federal securities laws. Cybersecurity Breach A 2021 vulnerability allowed unauthorized access to sensitive user information, affecting millions. Regulation SHO Viol...