IMG
ad

New York financial regulator fined $30 million to Robinhood’s cryptocurrency division

Key Points:

  • A $30 million fine was imposed on Robinhood’s cryptocurrency branch for “significant failures” in cybersecurity and anti-money laundering laws.
  • According to the NYDFSA, the anti-money laundering and cybersecurity program at Robinhood Crypto division has lacked adequate staffing and did not have sufficient funding to address the risk.
  • The New York State Department of Financial Services is enforcing this law for the first time in the bitcoin sector.

Details:

Robinhood’s cryptocurrency section took too long to switch from a manual transaction monitoring system to one more adequate for its user size and transaction volume.

The regulator claimed that Robinhood Crypto had broken the law by failing to keep a separate and dedicated phone number on its website for customer complaints, Robinhood Crypto allegedly violated regulations for consumer protection.

The amount is the most recent in a string of financial penalties regulators levied against Robinhood.
In 2020, Robinhood paid $65 million to settle an SEC probe over misleading customers information. In 2021, the Financial Industry Regulatory Authority (FINRA) fined Robinhood $70 million for outages and deceiving customers.

According to Cheryl Crumpton, associate general counsel of litigation and regulatory enforcement at Robinhood, the company has made “substantial progress” in developing its legal, compliance, and cybersecurity programs.

300 Views

Write a Comment

Add your comment

Your email address will not be published.

Forex Featured Brokers

RoboForex

Regulation : IFSC, CySEC
Min Deposit : 0 USD
Leverage : 1:1000
Type : STP/ECN/Market Maker

Start Trading View Profile »
AMARKETS

Regulation : FSA
Min Deposit : 0 USD
Leverage : 1:500
Type : STP/ECN

Start Trading View Profile »
FXTM

Regulation : CySEC, IFSC
Min Deposit : 5 USD
Leverage : 1:1000
Type : STP/ECN

Start Trading View Profile »
OCTAFX

Regulation : FCA, IFSA, SVG
Min Deposit : 50 USD
Leverage : 1:500
Type : ECN/NDD

Start Trading View Profile »
HFM

Regulation : CySEC, FSB, FSC, MiFID
Min Deposit : 5 USD
Leverage : 1:1000
Type : NDD

Start Trading View Profile »
FRESHFOREX

Regulation : IBC
Min Deposit : 1 USD
Leverage : 1:2000
Type : STP/ECN

Start Trading View Profile »