(Reuters) – Robinhood Markets Inc, the fintech startup credited with serving to popularize buying and selling amongst millennials, is being investigated by the U.S. Securities and Alternate Fee (SEC) and the Monetary Regulatory Authority (FINRA) over its dealing with of a system outage in March, Bloomberg Information reported on Monday.
One space of focus for the investigation is Robinhood’s lack of buyer response, the report stated, citing folks with direct data of the discussions. (https://bloom.bg/34QB3Aa)
Robinhood is likely one of the hottest fintech startups in Silicon Valley, having been valued at $11.2 billion in its most up-to-date funding spherical.
The corporate, nonetheless, has been criticized for not doing sufficient to reasonable excesses after certainly one of its clients took his life believing he had misplaced greater than $730,000 utilizing the free buying and selling app.
Robinhood, based mostly in Menlo Park, California, has skilled a number of outages since early March, significantly on days of excessive buying and selling volumes.
The SEC and the FINRA didn’t instantly reply to Reuters request for remark.
(Reporting by Niket Nishant in Bengaluru; Modifying by Vinay Dwivedi)