yes. It was widely reported on and criticized though and I believe the SEC decided not to ban it. This article[1] has some details but it seems like the SEC may not be able to. However, none other than Gary Gensler criticized the practice. That's my point is how different the reporting was on RH versus FTX over a similar practice.
edit: FWIW this is not even the biggest issue. Alameda making bets with FTX customer money seems to be the biggest problem. I am bringing this up because closeness between a trading firm and an exchange might have been an early clue to financial journalists that the relationship should be scrutinized.
Remember that the SEC exists because a bankrupt banking sector begged the government to give them a fig leaf. If you aren't sure who they serve, go looking for a punitive fine that's been levied and distributed to any victims of financial crime. Gensler appears to have skin in this FTX game personally, natch.
edit: FWIW this is not even the biggest issue. Alameda making bets with FTX customer money seems to be the biggest problem. I am bringing this up because closeness between a trading firm and an exchange might have been an early clue to financial journalists that the relationship should be scrutinized.
[1]: https://www.cnbc.com/2022/09/22/robinhood-jumps-after-report...