Robinhood app outage
On top of that, thousands of customers suffered more than $7m in total losses as a result of Robinhood's poor handling of cash balances and other financial information, the watchdog said, and those folks will be paid back.
And between 20, tens of thousands of users submitted written complaints that Robinhood failed to pass on to FINRA as required by law, the authority said. Not being able to trade properly during the downtime cost individual investors tens of thousands in losses, and Robinhood will pay at least $5m in restitution to those folks, the regulator said.Īlso in January 2021, the firm simply just blocked people from buying specific stocks that were particularly volatile, such as Gamestop and AMC. Robinhood previously said "unprecedented load" caused the March 2020 fiasco. The most serious outage occurred on March 2 and 3, 2020, when Robinhood’s website and mobile applications shut down, preventing Robinhood’s customers from accessing their accounts during a time of historic market volatility.
#Robinhood app outage series#
Between 2018 and late 2020, Robinhood experienced a series of outages and critical systems failures. Third, FINRA found that, from January 2018 to February 2021, Robinhood failed to reasonably supervise the technology that it relied upon to provide core broker-dealer services, such as accepting and executing customer orders.