Zero-fee retail buying and selling platform Robinhood is in sizzling water with New York regulators, based on its latest S-1 submitting.
Robinhood Crypto, the crypto buying and selling division of Robinhood, mentioned it expects to pay a $30 million settlement to the New York State Division of Monetary Providers (NYDFS) after a 2020 investigation “centered totally on anti-money laundering and cybersecurity-related points” discovered the corporate to be in violation of quite a few regulatory necessities.
Along with the financial penalty, Robinhood Crypto may even be required to “interact a monitor.”
The $30 million NYDFS tremendous is the most recent in a string of financial penalties levied towards Robinhood by regulators. Final December, the Securities and Trade Fee (SEC) obtained a $65 million cost from the buying and selling app to settle allegations it misled prospects. And final month, Robinhood was fined $70 million by the Monetary Business Regulatory Authority (FINRA), the most important tremendous ever issued by FINRA, for failing to guard prospects.