Stop me if you've heard this before, but Robinhood is in trouble or probably I could better state it by Robin Hood is in trouble once again Robinhood Fined 10 million dollars over platform outage in 2020? That might sound like a lot, but as I'm about to get into, this is pretty much them just paying a little speeding ticket and I don't understand how they get away with this time and time and time again. And then I started to look into it more in terms of what the Insiders with Robinhood what they're doing and all of it seems a little bit susque. With that being said, lit top right into it. The North American Securities administrators Association that's a mouthful has issued a 10.2 million dollar penalty against Robin and over poor Communications with its customers and trading outages on its platform in 2020..

This is probably gonna make you mad as we get into the details of what happened and how all their clients were basically screwed over the fact that they only have to pay a 10 million dollar fine when we're talking about a 9 billion dollar company. It's ludicrous. It blows my I've tried to make sense of it and I just get frustrated because it does not make sense. The investigation involved a close collaboration between the Nasaa and securities.

Regulators from Seven U.S states. So here's what happened in March of 2020: Robin Hood experienced a platform outage that lasted for two days, preventing users from buying and selling securities during one of the most volatile periods in the stock market's history. As a result, many users missed out on potential profits and some even lost money. Funny how that works.

in one of the most volatile periods ever. People are locked out for two days missing out on potential gains, and then some actually been suffering losses because of it. That's insane. It brings up a very legitimate question of how many times you have to break rules in the U.S until your brokerage license is pulled from you.

Apparently the answer is infinite because all I see from the likes of Robin Hood is Break The Rules Break The Rules Break the rules and you pay a little baby. Fine. I Don't understand the lack of ramifications here at the time time. Robin Hood had customers with more than 10 million accounts and a fair number of them were frustrated trying to figure out how they fared during a bullish trading session.

Clients complained about not having access to their account and having long wait times for customer service. Several lawsuits were filed against Robin Hood following the outage, with Clayton's alleging that the company's negligence caused them Financial harm. The lawsuit sought damages for losses suffered by users as a result of the platform's outage. I Mean it's beyond negligence I Mean if you look at the history of Robin Hood and what's been going on here I Think it's safe to say that they just hate their clients.

They are the opposite of the Robin Hood mythology. They are not stealing from the rich and giving to the poor. They are stealing from retail and putting it in their own. Pockets State Regulators Also probe: Robinhood for other alleged violations related to options and margin approvals and poor customer support.

The investigation found that the No Fee app provided Traders with inaccurate margin and risk information on option spreads with no proper due diligence was conducted before approval of certain customer accounts. This actually led to a very sad situation when the inaccurate margin and risk information on option spreads and they also were improperly displaying it. And there was a young kid who thought he blew up an account and owned the brokerage seven hundred thousand dollars and it was obviously such an emotional event for him. he ended up taking his own life like this isn't one of those things where we could look at and be like I was poor miscommunication.

like let's get over it I Cannot stress enough how this has had very real world impacts like beyond what you could ever possibly imagine. On just like your first hearing of the story, what has gone down here is an absolute travesty and they get away with just a small speeding ticket. The word disgust is not profound enough to properly explain this overall situation. Robin Hood Repeatedly failed to serve its clients, but this settlement makes clear that Robin Hood must take its customer care obligation seriously and correct these deficiencies.

Oh, now this far into the game, they're just figuring it out. now. one thing that might make you feel a little bit better is the world of markets and stocks has realized that they're full of it. This is: Robin Hood At one point it was soaring high at 85 and since then it is absolutely tumbled to under 10.

It's gotten beaten down and it's gotten beaten down for good reason. But wait, there's more. The plot thickens. I Decided to do a little bit of a deep dive to figure out if even the people within the company like the company.

and to my surprise, not at all. We're seeing recent sales from insiders Vlad Tennev, the CEO and also co-founder recently got out just under a million shares and then also you have the chief legal officer selling and at that point he sold about a hundred thousand so that was about 20. and Vlad is getting rid of just under half of the shares that he owned. So chief legal officer and the CEO selling considerable percentages of their equity in the companies that they are representing and working for.

And then yet they're going to tell us everything's fine and they're serving the client and they're doing what they can. But in reality they're getting hit with legal issues time and time again and they rightfully should because they've screwed over a lot of people. This is just one little issue among a myriad of crazy issues where Robin Hood has screwed over their clients. I Just want everyone to understand that their stock has been plummeting and now we see Insider selling very recently.

I mean the dates on these are April 4th and April 5th and we're filming this on April 11th. So I don't even think the selling party inside Robinhood is necessarily done. It's insane I Don't understand how anyone has a single Dollar on Robinhood I Don't understand how a single person could possibly trust this company. Obviously these are my own thoughts.

These are my own opinions. I'm no lawyer, so maybe I'm misinterpreting something. but I feel pretty confident in the fact that I can understand where they screw people over and then the five that they pay is a small small fraction of it. If we're in a setup like that, why would they ever stop the actions that they are committing when for them, it's a net positive and in real time.

What's going on now is they are on the side of Citadel and virtue. Ken Griffin Doug Sifu saying no payment for order flow. It's safe. It's good.

it's beneficial. We need to keep engaging in it. That's the recent argument they've are pending letters to the SEC saying it would be insane if we got rid of payment for order flow. They're not arguing for clients.

They're not arguing for a more transparent and fair market. What they're arguing for is their own bottom line and in my humble opinion I Just see that for them getting worse and worse and worse. But once again, those are my own thoughts. So I would love to hear yours.