Crypto arm of Robinhood fined $30 million by New York State's financial regulator
Robinhood crypto fined $30 million by New York state's financial regulator
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 consumer protection rules.
The New York State Department of Financial Services (NYDFS) said on Tuesday that Robinhood Crypto did not devote sufficient resources to address compliance and cybersecurity risks.
The online trading app has been at the center of several regulatory probes, including those sparked by last year's frenzy in meme stocks.
The Robinhood logo hangs at a pop-up event on Wall St during Robinhood's IPO in New York City, U.S., on July 29, 2021. (REUTERS/Andrew Kelly / Reuters)
"We are pleased the settlement in principle reached last year and previously disclosed in our public filings is now final," Cheryl Crumpton, associate general counsel of litigation and regulatory enforcement at Robinhood, said on Tuesday.
The company has made "significant progress" in building its legal, compliance and cybersecurity programs, Crumpton added.
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As part of the settlement, Robinhood Crypto would also be required to retain an independent consultant to evaluate its compliance practices, the NYDFS said.