Robinhood’s S-1 filings reveal its crypto arm is under fire for inadequate cybersecurity and for breaking anti-money laundering laws.

Zero-fee retail trading platform Robinhood is in hot water with New York regulators, according to its recent S-1 filing.

Robinhood Crypto, the crypto trading division of Robinhood, said it expects to pay a $30 million settlement to the New York State Department of Financial Services (NYDFS) after a 2020 investigation “focused primarily on anti-money laundering and cybersecurity-related issues” found the company to be in violation of numerous regulatory requirements. 

In addition to the monetary penalty, Robinhood Crypto will also be required to “engage a monitor.”

The $30 million NYDFS fine is the latest in a string of monetary penalties levied against Robinhood by regulators. Last December, the Securities and Exchange Commission (SEC) received a $65 million payment from the trading app to settle allegations it misled customers. And last month, Robinhood was fined $70 million by the Financial Industry Regulatory Authority (FINRA), the largest fine ever issued by FINRA, for failing to protect customers. 

 

All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Dogecoin price gains evaporate, putting a bullish DOGE outcome in doubt

Dogecoin price has been unable to overcome the determined resistance outlined by May’s descending trend line and today’s notable reversal of earlier gains suggests that DOGE will once again fail to close above the trend line.

More Dogecoin news

PancakeSwap screams buy, presenting an opportunity to profit by 85%

A brief technical and on-chain analysis on PancakeSwap price. Here, FXStreet's analysts evaluate where CAKE could be heading next as it seems bound for a bull rally.

More PancakeSwab news

SushiSwap flashes buy signal, SUSHI targets $8

A brief technical and on-chain analysis on SushiSwap price. Here, FXStreet's analysts evaluate where SUSHI could be heading next as it seems bound for higher highs.

More SuhsiSwab news

Floki Inu awaits more gains after FLOKI's impressive 160% breakout

A brief technical and on-chain analysis on Floki Inu price. Here, FXStreet's analysts evaluate where FLOKI could be heading next as it seems bound for higher highs.

More Floki Inu news

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP