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. 

Related Reading

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Layer-1 Platforms: A Framework for Comparison

The Block Research was commissioned by Algorand to create Layer-1 Platforms: A Framework for comparison, which provides a “look under the hood” at seven platforms: Algorand, Avalanche, Binance Smart Chain, Cosmos, Ethereum/Ethereum 2.0, Polkadot, and Solana. We assess their technical design, related ecosystem data, and qualitative factors such as key ecosystem members to get an understanding of how they differ. Having done this analysis, we draw some insights for what the future of the broader smart contract landscape could look like for years to come. 
Read Full Story
Aug 11, 2021, 5:18PM UTC