New York regulators slapped a $30 million fine on Robinhood Crypto.
Robinhood Crypto was fined $30 million by the New York Department of Financial Services for several regulatory infractions. Following an inquiry, the agency decided that the corporation had failed to maintain sufficient cybersecurity safeguards or to meet anti-money laundering duties. Robinhood Crypto was found to be in violation of the departments virtual currency, money transmitter, transaction monitoring, and cybersecurity requirements. Aside from paying the penalties, Robinhood Crypto will be compelled to employ an independent consultant to examine its compliance with state regulations, according to a statement from the commission. The corporation was also chastised for not including a specific phone number on its website where customers could lodge complaints. “As its business expanded, Robinhood Crypto failed to commit the necessary resources and attention to build and sustain a compliance culture,” said Adrienne Harris, superintendent of New Yorks Department of Financial Services. The agency claims that Robinhood Cryptos anti-money laundering program was “inadequately staffed,” employing a manual system for monitoring transactions even as its user base grew, and that its cybersecurity program had major flaws. The violations, according to regulators, were caused by a lack of management and control, demonstrating a “failure to establish and maintain an effective culture of compliance.” Despite the flaws, Robinhood applied