Robinhood compensates for customer losses in the amount $9.9 million – Bits Media

Cryptocurrency service Robinhood, by court decision, will pay compensation in the total amount $9.9 million to all users, affected by platform outages in 2020 year.

Trial, as a result of which a California federal court ordered a cryptocurrency broker Robinhood to pay compensation to $9.9 million, lasted two years. IN 2020 trading platform Robinhood repeatedly suspended its operations without prior notice.. Blocking of traders' operations led to significant losses, since at the same time financial markets showed record growth results.

Since this happened several times, then traders and users of the Robinhood platform filed a collective complaint with the courts of the Northern District of California, in which the service was accused of lack of supervision procedures and malicious actions. In total, about 150 000 Robinhood users said, that suffered due to a series of repeated interruptions in the operation of the application in 2020 year.

In addition to users and traders, US regulators drew attention to service interruptions, in particular, Agency for Regulation of Financial Institutions (FINRA), which conducted its investigation and fined Robinhood for violations on $70 million.

In early August, the cryptocurrency platform Robinhood began significant personnel changes due to the consequences of the collapse of the cryptocurrency market., and also announced a reduction in the company's staff by almost a quarter due to the deterioration of the macroeconomic environment.