Massachusetts securities regulators filed a complaint on Wednesday against Robinhood for marketing to inexperienced investors while failing to implement proper controls to protect them.
The enforcement arm of the Massachusetts Securities Division charged that Robinhood failed to protect its customers and their assets in violation of state laws and regulations, according to The Wall Street Journal, which cited a final draft of an administrative complaint.
The complaint estimated that as of early December, Robinhood has nearly 500,000 customers in Massachusetts with accounts totaling over $1.6 billion.
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