Robinhood's cryptocurrency arm — Robinhood Crypto — plans to pay New York regulators at least $10 million of fine for allegedly violating cybersecurity and anti-money laundering requirements, The Wall Street Journal has learned, citing the company's filings. The cryptocurrency arm has reportedly reached a settlement over a New York State Department of Financial Services (NYDFS) investigation.
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The Menlo Park-based company admits it might pay up to $15 million to settle the case. The WSJ says the watchdog informed Robinhood's crypto arm of violations of the rules earlier in March. NYDFS found "deficiencies" in Robinhood's policies and procedures regarding risk assessment such as an adequate incident response.
Earlier in June, iHodl reported that the Financial Industry Regulatory Authority (FINRA) ordered Robinhood to pay a $70 million fine for "systemic supervisory failures and significant harm suffered by millions of customers." According to FINRA, the broker-dealer "negligently" provided millions of its customers with false or misleading information.
The watchdog also says millions of customers affected by the firm’s systems outages in March 2020, and thousands of customers the firm approved to trade options "even when it was not appropriate for the customers to do so."
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