Robinhood Slapped With $30 Million Penalty

Robinhood continues to suffer from regulatory woes…

In 2021 the company was fined $70 million for allegedly causing undue harm to many of its clients, and the New York Department of Financial Services is now at Robinhood’s door for alleged compliance failures.

According to the NYDFS, Robinhood’s cryptocurrency division failed to meet a wide range of compliance standards across many areas.

The NYDFS complaint cites money laundering laws, consumer safety issues, and cybersecurity vulnerabilities as the areas that are afflicting the financial brokerage company.

As a result, the company has been fined a sum of $30 million by New York regulatory officials. Spokespeople for Robinhood have come out to defend the company’s security and adherence to regulatory standards.

One legal counselor for Robinhood cited their pioneering of regulatory and cyber security standards which she claimed were ‘industry-leading’.

Here are the latest developments:

#ICYMI: DFS Superintendent Harris Announces $30 Million Penalty on Robinhood Crypto for Significant Anti- Money Laundering, Cybersecurity & Consumer Protection Violations. Read more: https://t.co/TUD2SwmOcw

— NYDFS (@NYDFS) August 2, 2022

Crypto Briefing explains:

In addition to the $30 million penalty, the firm will now have to hire an independent consultant to ensure it meets the NYDFS’ regulatory requirements.

 

Robinhood’s cryptocurrency unit has agreed to pay about $30 million for failing to maintain and certify compliant anti-money-laundering and cybersecurity programs $HOODhttps://t.co/GoTY7J18VY

— Anthony DeRosa (@Anthony) August 2, 2022

Coin Telegraph captured Robinhood Associate General Counsel of Litigation Cheryl Crumpton’s response to the penalty:

According to Crumpton, Robinhood made “significant progress building industry-leading legal, compliance, and cybersecurity programs.”

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