Cryptocurrency entity Robinhood has been fined 30 million in New
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Cryptocurrency entity Robinhood has been fined $30 million in New York

It became known that the New York City Department of Financial Services (NYDFS) fined the cryptocurrency division of fintech firm Robinhood $30 million for identified money laundering and cybersecurity violations . For the first time, a lawsuit related to cryptocurrencies was considered in the state of New York.

    Image Credit: AFP/Getty Images

Image Credit: AFP/Getty Images

The NYDFS decision to issue a fine ends the investigation by Robinhood Crypto’s cryptocurrency division, which began in March of last year. This is supported by documents that Robinhood has filed with the US Securities and Exchange Commission. The company originally expected to be fined $15 million, but the amount assessed by the NYDFS was double that.

The NYDFS audit found that Robinhood Crypto’s cybersecurity system had significant deficiencies that did not fully eliminate the company’s operational risks. In addition, Robinhood’s cryptocurrency division had significant flaws in the current anti-money laundering program and also violated the Consumer Protection Act by not providing a phone number for receiving customer complaints on the official website.

“As its business grew, Robinhood Crypto failed to invest adequate resources and attention in developing and maintaining our department’s compliance culture, resulting in significant violations of AML/CIS regulations.”– commented on this topic the head of the NYDFS Adrienne Harris (Adrienne Harris).

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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