Robinhood’s crypto arm to pay a $30 million fine after New York state probe

Jul 21, 2021 | The Block News | 0 comments

robinhood’s-crypto-arm-to-pay-a-$30-million-fine-after-new-york-state-probe

Robinhood’s crypto unit anticipates settling a $30 million fine after a New York state investigation into its financial compliance and cybersecurity, according to a recent S-1 filing

The investigator, the New York State Department of Financial Services (NYDFS), first began investigating Robinhood in July of 2020 after receiving “a number of ‘matters requiring attention’ focused primarily on anti-money laundering and cyber-security related issues,” according to the filing. 

Robinhood’s crypto unit, Robinhood Crypto, has agreed to pay the $30 million fine and “engage a monitor” going forward. The Wall Street Journal first reported the news. 

The New York-based fine sits on top of the outstanding $70 million penalty from the Financial Industry Regulatory Authority (FINRA) for “supervisory failures” and the $65 million fine from the Securities and Exchange Commission (SEC) for allegedly providing customers misleading information about its costs to do business with Robinhood. 

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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