Get All Access for $5/mo

Robinhood Reveals Investigation Ahead of IPO Debut Robinhood announced Tuesday that regulators are looking into its CEO, Vlad Tenev, for not being licensed by the FInancial Industry Regulatory Authority.

By Emily Rella

Opinions expressed by Entrepreneur contributors are their own.

SOPA Images | Getty Images

Robinhood announced Tuesday that regulators are looking into its CEO, Vlad Tenev, for not being licensed by the FInancial Industry Regulatory Authority, Wall Street's self-regulator.

There are also inquiries from FINRA and the Securities and Exchange Commission about employee trades involving $GME, $AMC and other "meme stocks." The company noted that regulators want to know whether these employee trades "may have occurred in advance of the public announcement" on trading restrictions.

The investigation comes just ahead of Robinhood's highly anticipated initial public offering. Some forecasters have suggested the public offering could value Robinhood, a powerful online brokerage, at $35 billion.

Related: Robinhood Targets $ 35 Billion IPO

In an SEC filing, Robinhood said it received an investigative request for documents and information relating to its compliance with FINRA requirements for Tenev and co-founder Baiju Bhatt.

"Robinhood is evaluating this matter and intends to cooperate with the investigation," said the company in its late Tuesday filing.

As has been previously reported, the company is expected to price its IPO today and start trading on the Nasdaq tomorrow morning.

Related: Robinhood Fined a Record $70 Million Over "Serious" Violations

Emily Rella

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Business News

'I'm Not Trying to Land on Mars': Mark Cuban Takes Dig at Elon Musk to Explain Why His Online Pharmacy Isn't Trying to Make More Money

Mark Cuban Cost Plus Drug Co. is an online pharmacy co-founded by Cuban and radiologist Alex Oshmyansky.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Meta Makes $1 Million Dollar Donation to Donald Trump's Inaugural Fund

Meta CEO Mark Zuckerberg also reportedly gave Trump a pair of Ray-Ban Meta smart glasses.

Starting a Business

How to Start a Freight Brokerage Business

Get your entrepreneurial destiny really moving by becoming a broker--matching shippers and transportation servicess--for the freight industry.

Business News

'It's Not About You': How to Fire Someone Effectively, According to Kevin O'Leary

O'Leary says that if you can't fire someone, you aren't the right leader for the organization.