Robinhood’s crypto arm to pay a $30 million fine after New York state probe


Robinhood's crypto unit anticipates settling a $30 million fine after a New York state investigation into its financial compliance and cybersecurity, according to a recent S-1 filing

The investigator, the New York State Department of Financial Services (NYDFS), first began investigating Robinhood in July of 2020 after receiving “a number of ‘matters requiring attention’ focused primarily on anti-money laundering and cyber-security related issues,” according to the filing. 

Robinhood’s crypto unit, Robinhood Crypto, has agreed to pay the $30 million fine and “engage a monitor” going forward. The Wall Street Journal first reported the news. 

The New York-based fine sits on top of the outstanding $70 million penalty from the Financial Industry Regulatory Authority (FINRA) for “supervisory failures” and the $65 million fine from the Securities and Exchange Commission (SEC) for allegedly providing customers misleading information about its costs to do business with Robinhood. 

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With more than $100 billion in market cap across all chains, it is likely that the DeFi market cap will grow to $200 billion by 2025. However, many users still face various technical barriers when using decentralised platforms to do on-chain farming, staking and trading, while off-chain solutions face liquidity issues, fiat restrictions and the lack of a central multichain to support crypto assets and institutional-grade custodians. 
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