Illustration by Alex Castro / The Verge
Robinhood’s cryptocurrency division has been fined $30 million by the New York Department of Financial Services over alleged anti-money laundering and cybersecurity violations (via The Wall Street Journal). This marks the state’s first enforcement action related to cryptocurrency.
The settlement resolves the investigation opened by the NYDFS last March, which Robinhood disclosed in a filing with the Securities and Exchange Commission before the company went public. While Robinhood initially estimated that the NYDFS would fine the company up to $15 million, it later amended its filing to reflect an estimated $30 million fee.
According to the NYDFS, Robinhood Crypto’s cybersecurity program had “critical failures” that “did not fully…