New York Financial Regulator Fines Robinhood's Crypto Division $30 Million

"As its business grew, Robinhood Crypto failed to invest the appropriate resources and attention to develop and maintain a culture of compliance," Superintendent Adrienne said. Harris.

The New York Department of Financial Services, or NYDFS, has announced a $30 million fine on the cryptocurrency arm of Robinhood for alleged violations related to anti-money laundering laws, cybersecurity and consumer protection.

In an announcement on Tuesday, NYDFS Superintendent Adrienne Harris said Robinhood Crypto would pay a $30 million fine to the state "for material breaches in the areas of bank secrecy/credit law." anti-money laundering obligations" as well as cybersecurity failures that allegedly violated New York regulations. According to Harris, Robinhood's crypto unit will also need to hire an independent consultant to assess the company's compliance and remediation efforts.

"As its business has grown, Robinhood Crypto has failed to invest the resources and attention needed to develop and maintain a culture of compliance," Harris said. "All virtual currency companies licensed in New York State are subject to the same anti-money laundering, consumer protection and cybersecurity regulations as traditional financial services companies."

#ICYMI: DFS Superintendent Harris Announces $30 Million Fine on Robinhood Crypto for Significant Anti-Virus Violations money laundering, cybersecurity and consumer protection. Learn more: https://t.co/TUD2SwmOcw

According to the NYDFS consent order, the department conducted a review of Robinhood Crypto between January and September 2019, alleging that it had "discovered serious deficiencies in RHC's compliance function in several areas." The NYDFS then launched a law enforcement investigation, finding that Robinhood's crypto arm had violated aspects of the...