Robinhood's Crypto Arm to Pay $30M for Anti-Money Laundering, Consumer Protection Violations

From CNET: Robinhood Crypto, the cryptocurrency trading unit of the popular investing app, was hit with a $30 million fine from the New York State Department of Financial Services for "significant" failures to comply with the state's anti-money laundering, consumer protection and cybersecurity measures.

NYDFS, which regulates financial services and products in the state, said in a press release Tuesday that Robinhood Crypto failed to adequately staff their bank secrecy act/anti-money laundering ("BSA/AML") program, and that the program didn't have enough resources to address risks consumers face using their services. The department also said the company's cybersecurity program wasn't in full compliance with NYDFS regulations.

On top of this, NYDFS said the company failed to offer "a distinct, dedicated phone number on its website" for receiving consumer complaints.

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