Moreover, the investigation uncovered that Robinhood neglected to report suspicious activity in a timely manner from January 2020 to March 2022 and failed to enforce adequate identity theft protection measures between April 2019 and July 2022. The SEC also cited Robinhood's failure to comply with "Regulation SHO," a rule meant to curb abusive short-selling practices, from December 2019 to May 2022. Additionally, a cybersecurity vulnerability in 2021 allowed unauthorized access to millions of customer accounts. Excerpt of the SEC's administrative and cease-and-desist proceeding with Robinhood. Source: SEC