(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 Change Fee and the Monetary Regulatory Authority 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 individuals with direct data of the discussions.
Robinhood is without doubt 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 average excesses after one in all its prospects 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, notably on days of excessive buying and selling volumes.
The SEC and the FINRA didn’t instantly reply to Reuters request for remark.