Consumer complaint received 2023-01-14
Company: ROBINHOOD MARKETS INC.
State: VA
Product: Money transfer, virtual currency, or money service
Sub-product: Domestic (US) money transfer
Issue: Other service problem

Complaint:
There is XXXX company named Robinhood Financial Inc. who sold stocks to many companies did fraud with me and without my permission sold my XXXX XXXX XXXX  and losen me {$4300.00} because I buy XXXX stock of XXXX in the amount of {$18.00} and this time when the market was open all stocks were down so I owe some money from Robinhood because I have a good account with them so they gave much money to me only I got some of {$400.00} extra in my account because all stocks prices are down but markets are open and any time stocks can go up and my stocks prize also goes up and I can't owe any money from Robinhood, but that fraud Robinhood said that you owe some of extra {$400.00} from us so immediately gave us our {$400.00} or we can sell your stocks.

Before this they never did before this I owe an extra {$1200.00} from Robinhood but they never sold my any stocks they only alert me that I can deposit money in my account and bring a positive balance but didn't said that they can be sold my stocks. But this time their mind goes mental in the open market they showed me this message for just {$400.00} and when I have not seen that message the fraud Company sold my XXXX XXXX stocks themselves and losen me my {$4300.00} for only {$450.00}. 

This Robinhood is % XXXX fraud Company because in XXXX XXXX XXXX about XXXX people reported that this is a fully fraud Company last year, Robinhood is fined {$70.00} XXXX over misleading customers and system outages. Robinhood Financial, the online stock-trading app, was fined {$70.00} XXXX by the securities industrys self-regulator on Wednesday for a series of failures that the agency said hurt Robinhoods customers. 

And the XXXX XXXX XXXX has repeatedly been accused of operational and regulatory lapses by regulators and lawmakers that, critics said, left customers exposed to sometimes ruinous losses. Robinhood has already paid tens of millions of dollars in fines, including {$65.00} XXXX to the Securities and Exchange Commission, for misleading customers about its business. 

XXXX XXXX XXXX, a spokeswoman for Robinhood, said in a statement, We are glad to put this matter behind us and look forward to continuing to focus on our customers and democratizing finance for all. 

Robinhood, which was founded by XXXX XXXX and XXXX XXXX, has long had a mission of democratizing finance. It grew by attracting investors especially younger ones with its no-fee trading. But the company has faced questions about whether it encouraged overly risky trading with its lack of fees and features such as behavioral nudges and push notifications that critics said created a gambling-like atmosphere. 

Because of this fraud Company last year, a XXXX customer died by XXXX after discovering a negative {$730000.00} balance in his Robinhood account, a figure that was somewhat inflated because of incomplete trades. 

In recent months, prominent investors have also criticized Robinhood and its practices. This week, XXXX XXXX and XXXX XXXX of XXXX XXXX called for stronger regulation of the app on XXXX, with XXXX XXXX calling Robinhood a gambling parlor masquerading as a respectable business. 

At the time, Robinhood halted trades on certain stocks, which enraged customers and prompted nearly XXXX customer lawsuits. 

Robinhood has raised billions of dollars in funding from investors such as XXXX XXXX and XXXX XXXX XXXX. During the meme stock rally, it raised {$1.00} XXXX and then another {$2.00} XXXX in quick succession after it was strained by the high volume of trading through its app. 

In a XXXX congressional hearing about the meme stock rally, in which Robinhood was cast as the villain, XXXX XXXX took an apologetic tone.

Company response to consumer: Closed with explanation