Home Business Robinhood’s Crypto Arm Fined $30 Million by New York State Financial Regulator

Robinhood’s Crypto Arm Fined $30 Million by New York State Financial Regulator

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(Reuters) – New York state’s financial regulator has fined the crypto arm of Robinhood Markets Inc $30 million for alleged violations of anti-money laundering, cybersecurity and anti-money laundering rules. consumer protection.

The New York State Department of Financial Services (NYDFS) said on Tuesday that Robinhood Crypto has not dedicated enough resources to address compliance and cybersecurity risks.

The online trading app has been at the center of several regulatory investigations, including those sparked by last year’s frenzy in meme stocks.

“We are pleased that the tentative settlement reached last year and previously disclosed in our public filings is now final,” Cheryl Crumpton, associate general counsel for litigation and enforcement at Robinhood, said Tuesday.

The company has made “significant progress” in building its legal, compliance and cybersecurity programs, Crumpton added.

As part of the settlement, Robinhood Crypto would also be required to hire an independent consultant to assess its compliance practices, the NYDFS said.

(Reporting by Niket Nishant in Bengaluru; Editing by Aditya Soni)

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