HomeCrypto StartupsRobinhood has been fined $30 million.

Robinhood has been fined $30 million.


Robinhood (NASDAQ:HOOD) has been fined $30 million by the New York State Department of Financial Services (NYDFS). The penalty is for allegedly violating cybersecurity and anti-money laundering standards.

Robinhood’s Bank Secrecy Act and anti-money laundering compliance systems, according to the regulator, were “understaffed.”

As its business evolved, Robinhood Crypto allegedly failed to commit the resources required to build a compliance culture, resulting in major violations of the department’s anti-money laundering requirements. Finance and cybersecurity

According to NYDFS, the company’s cybersecurity program had severe flaws and failed to effectively address “operational risks.”

Furthermore, because there was no dedicated telephone number on its website for customer complaints and it did not comply with reporting requirements, Robinhood would not have met with consumer protection standards.

Over the last two years, the business has paid $100 million in fines to authorities. For failing to protect customers, the Financial Industry Regulatory Authority (FINRA) penalized it $70 million in 2021.

Leave a Reply


SBF attempted to destabilize the cryptocurrency market in order to save FTX: Report

Alameda Research's trades were reportedly focused on depeg Tether's stablecoin. According to reports on December 9, Tether executives and Binance CEO Changpeng "CZ" Zhao were concerned...

Views Of Binance By US Authorities: “Money Laundering” Cz Deny.

The still-developing crypto industry has suffered greatly in 2022. After many years of enthusiasm, the crypto empires and the sector's behemoths are now feeling the...

The Ignorance Defense Plan of ex FTX CEO Fails.

No one seems to believe Sam Bankman-Fried when he says he was not aware of FTX's wrongdoings. When asked how his exchange, which assured clients their...

Binance hires an audit firm that previously worked for Donald Trump to verify cryptocurrency reserves.

Mazars' US division has long served as the accounting firm for former US President Donald Trump's company. Binance is collaborating with accounting firm Mazars as part...

Follow us


Most Popular

%d bloggers like this: