Robinhood

Marked as

Medium Risk Company

Last updated - February 10, 2026

Medium Risk

i
2.1

0

User Score

1.8

Trust Score

2.3

Brand Score

OVERVIEW

About Robinhood

Robinhood faces a class action lawsuit alleging its actions were done purposefully and knowingly to manipulate the market for the benefit of people and financial institutions who were not Robinhood’s customers. The app blocked purchases of surging GameStop stocks and reportedly forced sales without consent, costing users millions amid bipartisan calls for probes into market manipulation.

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CONNECTIONS AND RELATIONSHIP

CONTACT INFORMATION

Twitter
@RobinhoodApp
Instagram
RobinhoodApp
LinkedIn
Robinhood
Youtube
@RobinhoodApp

FINANCIAL RISK AUDIT

For Consumers
For Consumers

High Risk

Based on the available data, we advise consumers to avoid this Company altogether.

This advisory is based on an aggregate risk score derived from OSINT, Adverse Media, Reviews, and Risk Factors identified in our research.

You are likely to be at great risk by engaging in any sort of consumer-related activity with this entity.

For Employees
For Employees

Medium Risk

Based on the available data, we advise employees to be mindful when considering or continuing work with this Company.

This advisory stems from a medium-risk score compiled from OSINT, Adverse Media, Reviews, and Risk Factors uncovered in our analysis.

Employment with this entity may involve moderate risks.

For Banks & Investors
For Banks & Investors

High Risk

Based on the available data, we urge investors and bankers to avoid financial involvement with this Company.

This advisory is informed by an aggregate risk score based on OSINT, Adverse Media, Reviews, and Risk Factors identified through our investigation.

Engaging in investment or lending activities with this entity poses a substantial risk to your financial interests.

ASSESSMENT OUTCOME
  • Safe to Onboard

  • Enhanced Due Diligence required

  • Do Not Onboard

RECOMMENDATIONS
  • Monitor adverse media every 6 months

  • File SAR (Suspicious Activity Report) is warranted

  • Escalation to compliance committee

  • None

Do you agree with this our assessment on Robinhood?

OSINT DATA POINT

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Name

Robinhood
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CEO

Vladimir Tenev
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Co-Founder

Vladimir Tenev
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Another Co-Founder

Baiju Bhatt
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Established

2013
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Jurisdiction

Delaware
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Headquarters

Menlo Park
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State

California
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Country

USA
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Category

Fintech
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Sub Category

Brokerage
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Revenue 2024

2.95 Billion
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Employees 2024

2300
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Funded Users

26.7 Million
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Stock Symbol

HOOD
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Exchange

Nasdaq
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Twitter

RobinhoodApp
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Instagram

robinhoodapp
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Acquisitions 2025

Bitstamp
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Pending Acquisition

WonderFi
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Average User Age

35
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Ongoing Lawsuit 1

Trade Execution
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Ongoing Lawsuit 2

Order Flow
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Ongoing Lawsuit 3

Cash Sweep
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Adverse Media 1

Game Stop Restrictions
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Adverse Media 2

System Outages
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Adverse Media 3

Security Breaches
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Regulatory Fine 1

45 Million SEC
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Regulatory Fine 2

26 Million FINRA
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Regulatory Fine 3

10 Million Multi State
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Product

Stock Trading
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Product

Crypto Trading
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Product

Debit Card
Load More

ENTERPRISE RISK ASSESSMENT (ERA)

Robinhood faced fines for systemic supervisory lapses, including inadequate monitoring of social media influencers promoting the platform, leading to misleading statements and unaddressed red flags of misconduct.

Robinhood failed to implement reasonable AML programs, resulting in undetected manipulative trading, suspicious money movements, and account takeovers by hackers, prompting regulatory penalties.

Robinhood provided inaccurate information on “collaring” market orders, causing canceled trades and inferior re-entries that cost customers millions, alongside failures in fair execution disclosures.

Robinhood had vulnerabilities allowing unauthorized system access, failures in identity theft protections, and lapses in preserving electronic communications and databases as required by law.

Robinhood’s push into prediction markets, including sports outcomes, has drawn accusations of illegal gambling from state attorneys general, raising concerns over regulatory compliance and consumer protections.

Robinhood has been charged with short selling regulation breaches, including failures in failure-to-deliver closeouts, improper marking, and falsifying trade data, amid allegations of illegal practices.

Users report shady practices like gamification encouraging risky trading, outages during volatile periods, poor customer service, and selling orders to third parties, eroding trust in the platform.

Robinhood paid $70 million in 2021 for misleading customers and system outages, part of a pattern including over $100 million in 2025 penalties for multiple securities and AML violations.

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AML and KYC Assessment

Regulatory and Compliance Screening

  • Sanctions Matches
  • Yes
  • No
  • Unclear
  • PEP Status
  • Yes
  • No
  • Unclear
  • Watchlist: (Interpol, EU, UN, OFAC, etc).
  • Yes
  • No
  • Unclear
  • Law Enforcement Mentions
  • Yes
  • No
  • Unclear

Litigation and Legal Proceedings

  • Criminal Proceedings
  • Yes
  • No
  • Unclear
  • Regulatory Enforcement Actions: [SEC, FCA, SEBI, etc.]
  • Yes
  • No
  • Unclear
  • Ongoing Investigations
  • Yes
  • No
  • Unclear
  • Reputational and Adv
  • Yes
  • No
  • Unclear

Reputational and Adverse Media Risks

  • Negative Media Mentions
  • Yes
  • No
  • Unclear
  • Allegations / Scandals
  • Yes
  • No
  • Unclear
  • Social Media Red Flags
  • Yes
  • No
  • Unclear
  • Censorship Attempts [PR, Takedowns, DMCA Abuse, etc.]
  • Yes
  • No
  • Unclear

Geographic and Jurisdictional Risk

  • Country Risk Level
  • Yes
  • No
  • Unclear
  • High-Risk Sections [Crypto, Gambling, Arms, etc.]
  • Yes
  • No
  • Unclear
  • Offshore Jurisdictions Used [Panama, BVI, Cyprus, etc.]
  • Yes
  • No
  • Unclear

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RED FLAGS AND ADVERSE NEWS

coming

bloomberg.com

Visit Link

Robinhood pays $65M to settle SEC probe for misleading clients on stock order sales to HFT firms, failing best execution, costing users $34.1M.

  • First Detected

    17/12/2020
  • Sentiment Analysis

    Negative
  • Reach

    >1000
  • POV

    Third Person
  • Risk Factor

    High
  • Type

    Regulatory
  • Traffic Source

    Website
  • SERP

    Top 10
  • Share of Voice

    10%
  • Primary Keyword

    Sanction
coming

coindesk.com

Visit Link

Florida AG probes Robinhood Crypto for deceptive pricing claims, citing PFOF model leading to higher costs despite low-fee promotions.

  • First Detected

    11/07/2025
  • Sentiment Analysis

    Neutral
  • Reach

    >1000
  • POV

    Third Person
  • Risk Factor

    Medium
  • Type

    News
  • Traffic Source

    Website
  • SERP

    Top 10
  • Share of Voice

    10%
  • Primary Keyword

    Investigation
coming

reuters.com

Visit Link

Robinhood fined $70M by FINRA for misleading info, outages harming millions; includes restitution, clears path for IPO amid scrutiny.

  • First Detected

    01/07/2021
  • Sentiment Analysis

    Negative
  • Reach

    >1000
  • POV

    Third Person
  • Risk Factor

    High
  • Type

    News
  • Traffic Source

    Website
  • SERP

    Top 10
  • Share of Voice

    20%
  • Primary Keyword

    Sanction

Other Red-Flags and Adverse News

redflag
2021 Robinhood to pay record $70M to settle range of allegations
redflag
2024 Game Over: Robinhood Pays $7.5 Million to Resolve “Gamification” Securities V...
redflag
2024 Robinhood settles Massachusetts regulators' trading case for $7.5 million
redflag
2021 Robinhood App Faces Lawsuit and Probe for Role in Stock Trading Frenzy

Financial Profile for Robinhood

Do you want to unlock a detailed Risk Assessment and audit report for Robinhood?

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Based on user engagement on this review profile, ProConsumer will decide to publish its Risk Audit report for public if a threshold engagement, traffic and user input is achieved.

  • Known Assets: [Real estate, investments, companies]

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  • Suspicious Transactions

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  • Liabilities: [Bankruptcies, defaults, debts]

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  • Wealth Sources: [Legitimate / Unclear / High-risk]

    greentick
  • Bank Relationships

    greentick
  • Bank Relationships

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  • Ultimate Beneficial Owner(s) (UBOs)

    greentick
  • Shareholding structure

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  • Associated entities & subsidiaries

    greentick
  • Offshore / shell company links

    greentick
  • Trusts / Nominee arrangements

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  • Business Model Assessment

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Consumer Reviews and Ratings for
Robinhood

All comments are user-generated content and may not be verified. They represent the personal opinions of the public and should not be relied upon. These comments do not influence or determine our overall rating.

User Rating for Robinhood

Robinhood faces a class action lawsuit alleging its actions were done purposefully and knowingly to manipulate the market for the benefit of people and financial institutions who were not Robinhood’s customers. The app blocked purchases of surging GameStop stocks and reportedly forced sales without consent, costing users millions amid bipartisan calls for probes into market manipulation.

USER’S SCORE

0

Trust

0

Safety

0

Brand

0

Risk

0

Pros

  • greentick

    Highly experienced

  • greentick

    Well-recognized name

Cons

  • redcros

    Faced allegations of scamming others

  • redcros

    Allegedly sold fake silver

  • redcros

    Sued multiple times

  • redcros

    Unregulated industry

  • redcros

    Alarming number of complaints online

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