Robinhood fined $26m and ordered to pay restitution in March 2025

What happened

On 7 March 2025, the Financial Industry Regulatory Authority announced sanctions against Robinhood Financial LLC and Robinhood Securities, LLC. The firms agreed to a combined $26 million fine, and Robinhood Financial agreed to pay $3.75 million in restitution to certain customers.

What FINRA found

FINRA said Robinhood Financial gave customers inaccurate or incomplete disclosures about the practice of converting market orders to limit orders using collars. Its findings also covered anti-money-laundering and supervisory failures, the firms' response to clearing-system processing delays, influencer communications and regulatory reporting.

FINRA said the firm's supervision and systems did not keep pace during periods of rapid growth. The customer restitution addresses certain losses tied to misleading disclosures about order collaring.

Settlement and status

The Robinhood entities accepted and consented to FINRA's findings without admitting or denying them, agreed to the sanctions, and undertook to certify remediation. TraderJury records the enforcement matter as resolved because the settlement set the fine, restitution and corrective commitments.

Scope

This case reports the findings and settlement in FINRA's March 2025 action. It does not independently determine the outcome of any individual customer's account or function as a complete review of Robinhood's current services.