Robinhood Crypto to Pay $15M Fine Over Security, Anti-Money Laundering Issues

[Tamsialu$$]

The $15 million fine by New York state is the latest in a series of penalties to hit Robinhood. It also underscores the regulatory risk of operating in the crypto sphere. According to the filing, Robinhood set aside $10 million last year related to the NYDFS action, and another $5 million in the first quarter of this year. News of the NYDFS settlement comes a week after Robinhood agreed to pay a $70 million fine—the largest of its kind—to FINRA over outages and miscommunications that the federal regulator said created "significant harm" to Robinhood customers. As for the New York settlement, the filing offers few details about the nature of the allegations. It only states that the NYDFS action relates to Robinhood's crypto division—known as RHC—and is "focused primarily on anti-money laundering and cybersecurity-related issues."more