Robinhood has officially filed to become a public company with its S-1 hitting newswires on Thursday, July 1.
According to the S-1, Robinhood has 18 million net cumulative funded accounts, and 17.7 million monthly active users as well as $81 billion assets under its custody. Robinhood said that over 50% of clients are first-time investors.
FINRA announced one of its biggest penalties on Wendesday, June 30. It said that it was fining Robinhood.
Robinhood will pay FINRA $57 million in a fine and $12.6 million, plus interest, in restitution.
The organization didn't mince words when discussing the fine in a post on its website, either.
"...FINRA found in its investigation that, despite Robinhood’s self-described mission to “de-mystify finance for all,” during certain periods since September 2016, the firm has negligently communicated false and misleading information to its customers. The false and misleading information concerned a variety of critical issues, including whether customers could place trades on margin, how much cash was in customers’ accounts, how much buying power or “negative buying power” customers had, the risk of loss customers faced in certain options transactions, and whether customers faced margin calls," states the post.
Robinhood posted a blog post detailing the changes and "investments" that the company has made.
Watch the video above for more.