New York State Fines Crypto Wing of Robinhood $30,000,000 for Allegedly Violating Consumer Protection Laws

New York State Fines Crypto Wing of Robinhood $30,000,000 for Allegedly Violating Consumer Protection Laws


The state of New York is levying a fine against the crypto branch of trading giant Robinhood for allegedly violating consumer protection and anti-money laundering laws.

According to a new press release by New York’s Department of Financial Services (DFS), an investigation into Robinhood unveiled that the company failed to maintain regulatory standards.

The DFS found that Robinhood had “significant deficiencies” in its Bank Secrecy Act/Anti-Money Laundering (BSA/AML) protocols, such as being understaffed, using an inadequate monitoring technology for the size of its operations, and employing an insufficient cybersecurity system.

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“Superintendent of Financial Services Adrienne A. Harris announced today that Robinhood Crypto will pay a $30 million penalty to New York State for significant failures in the areas of bank secrecy act/anti-money laundering obligations and

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