Robinhood Pays $70 Million To Settle Allegations Of Manipulation, Opening Door To IPO

Following reports that regulators have been throwing up obstacles to Robinhood’s planned IPO, forcing the company to push back its expected timeline for the offering, the Wall Street Journal reported just minutes ago that the discount brokerage has just agreed to pay $70MM to settle allegations that have been giving the firm serious problems.

The settlement with Finra, the industry’s self-regulatory body, will resolve allegations that Robinhood misled customers, approved ineligible traders for risky strategies and didn’t supervise technology that failed and locked millions out of trading.

The fine is, of course, merely a speeding ticket: The firm’s revenue growth has surged, with its revenue from trading more than tripling during Q1. Critics of the company have complained about all of these practices in the past.