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The Robinhood toll-free retail platform is in hot water with regulators in New York City, according to its recent S-1 filing.
Robinhood Crypto, the crypto trading division of Robinhood, said it expects to pay a $ 30 million settlement to the New York State Department of Financial Services (NYDFS) after a 2020 investigation “focused mainly on the fight against money laundering and cybersecurity issues “the company violates numerous regulatory requirements.
In addition to the monetary penalty, Robinhood Crypto will also have to “hire a monitor”.
Related: How $ 33 Billion Robinhood Ended Up Worth Less Than Coinbase
The $ 30 million NYDFS fine is the latest in a series of financial penalties imposed on Robinhood by regulators. Last December, the Securities and Exchange Commission (SEC) received a payment of $ 65 million from the trading app to settle claims it misled clients. And last month, Robinhood was fined $ 70 million by the Financial Industry Regulatory Authority (FINRA), the biggest fine ever imposed by FINRA, for failing to protect its clients.
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