Robinhood Crypto is paying $ 15 million for AML issues

Robinhood Cryptocurrency Pays $ 15 Million Fines for Anti-Money Laundering and Security Issues. This is the latest in a series of penalties for the platform.

Robinhood is also reported to have highlighted the regulatory risks of doing business in the crypto space, and as such, has settled with the New York Financial Regulator. The agreement may require the platform to incorporate a government-designated display. Robinhood Crypto pays $ 15 million in fines on allegations related to its cryptocurrency entity and its dealings with cybersecurity and anti-money laundering. That news has been buried in the footnotes of SEC filings as of last week, and it only goes to show that the popular app for buying stocks is increasingly being scrutinized by law when it opens its doors.

According to the file, Robinhood spent $ 10 million in connection with the NYDFS lawsuit a year ago and an additional $ 5 million in the first quarter of the year. The news of the NYDF deal comes a week after Robinhood agreed to fine FINRA $ 70 million for power outages and false notifications that the regulator did massive damage to Robinhood’s customers. As for the New York settlement, the filing includes new details on the allegations, and it only states that the NYDFS action related to Robinhood’s crypto division is known as RHC and is primarily focused on Robinhood. Robinhood noted that the company and the NY regulator have reached an agreement and that the platform will pay a fine and participate in the surveillance.

While a $ 15 million fine isn’t very important to Robinhood, the obligation to hire an administrator could be even tougher. Overseers are court-appointed officials kept secret about the activities of private companies, a measure companies don’t really like and may slow Robinhood’s efforts to ramp up its crypto operations to compete with companies like Coinbase. In the SEC filing that Robinhood was preparing as the final step before going public, the company disclosed $ 11 billion in crypto to its clients, and DOGE made up a large part of the company’s trading activities. The news of the NYDFS deal comes a week after Robinhood agreed to pay a $ 70 million fine, the largest of its kind for blackouts and misinformation released by the regulator that caused great damage to the customer.

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