Security News > 2022 > August > Robinhood's crypto unit hit with $30m fine over security, anti-crime misses

According to the US state's Department of Financial Services on Monday, Robinhood Crypto didn't hire sufficient staff and didn't invest in other resources for its anti-money-laundering and cybersecurity compliance programs.

"As its business grew, Robinhood Crypto failed to invest the proper resources and attention to develop and maintain a culture of compliance - a failure that resulted in significant violations of the Department's anti-money laundering and cybersecurity regulations," New York's Superintendent of Financial Services Adrienne Harris said.

In addition to paying the $30 million penalty to end the matter and avoid further action, Robinhood Crypto also agreed to hire an independent consultant to evaluate its compliance with the state's regulations, according to a settlement [PDF] publicized today.

"We are pleased the settlement in principle reached last year and previously disclosed in our public filings is now final," Cheryl Crumpton, associate general counsel of litigation and regulatory enforcement at Robinhood Markets, said in an emailed statement to The Register.

Crumpton is referring to a filing with the US Securities and Exchange Commission from last year, in which Robinhood disclosed the multi-million-dollar fine before the company went public.

The $30 million fine comes a little more than a year after another watchdog hit Robinhood with a $70 million bill for causing investors to lose millions of dollars due to misleading financial information and system outages.

News URL

https://go.theregister.com/feed/www.theregister.com/2022/08/02/robinhoods_crypto_penalty/