Cryptocurrency exchange to pay its customers $ 10 million in compensation for technical problems

The cryptocurrency exchange Robinhood will pay its customers $ 10 million in compensation for technical problems that led to material losses of users — more than $ 20.4 million was lost.

As it has become known, as part of the trial, Robinhood representatives reached an agreement with a group of plaintiffs who lost $ 20.4 million of their savings due to repeated problems with the Robinhood software. In total, 15,000 users supported the class action lawsuit, which will share $ 9.9 million.

As a reminder, the first global failure in the Robinhood system occurred back in March 2020, when the stock market showed record gains and the platform stopped working. The same situation occurred a few days later, when clients faced technical failures and lost their funds again. A similar situation occurred at the end of June 2022, when many cryptocurrency exchanges suspended their operations due to problems with Cloudflare’s high-speed server network. Representatives of Cloudflare explained that the network experienced failures after the upgrade, but the problems were quickly resolved.