Robinhood Crypto Expects to Pay $30M Fine to NY State Regulatory Body
Robinhood’s S-1 filings reveal its crypto arm is under fire for inadequate cybersecurity and for breaking anti-money laundering laws.
Jul 21, 2021 at 10:10 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/SPMAZLVPYNFOVMC33KBCSBWJLA.jpg)
Robinhood recently filed with the SEC to go public.
Zero-fee retail trading platform Robinhood is in hot water with New York regulators, according to its recent S-1 filing.
Robinhood Crypto, the crypto trading division of Robinhood, said it expects to pay a $30 million settlement to the New York State Department of Financial Services (NYDFS) after a 2020 investigation “focused primarily on anti-money laundering and cybersecurity-related issues” found the company to be in violation of numerous regulatory requirements.
In addition to the monetary penalty, Robinhood Crypto will also be required to “engage a monitor.”
The $30 million NYDFS fine is the latest in a string of monetary penalties levied against Robinhood by regulators. Last December, the Securities and Exchange Commission (SEC) received a $65 million payment from the trading app to settle allegations it misled customers. And last month, Robinhood was fined $70 million by the Financial Industry Regulatory Authority (FINRA), the largest fine ever issued by FINRA, for failing to protect customers.
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