$ 30 million fine for Robinhood, the crypto platform blocked by the US regulator

Black Series for Robinhood – Instead Robin Hoodone of the leading cryptocurrency platforms in the ecosystem, it was prosperous, the cryptocurrency winter fell without warning in the blockchain world. Forced to part with her staff, it was therefore believed that the exchange had come out of its turbulent zone. Not to mention the zealous American regulator who intends to remind the company of his duties.

Robinhood fined $ 30 million

Robinhood Markets Inc. he was therefore fined 30 million dollars by the NYDFS (New York State Department of Financial Services), the New York State Department of Financial Services.

The interested party allegedly violated the anti-money laundering and cybersecurity regulations. This isn’t the first time Robinhood has found itself in trouble with the US financial police. In the SEC’s focus, for example, he had already provided the commission with documents announcing the NYDFS investigation. However, at the time, the cryptocurrency platform only faced $ 10 million in fines.

Robinhood logo

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Security flaws in consumer protection

The cryptocurrency platform would not comply with the regulations required by the New York State financial regulator. The company would therefore be, according to the Wall Street newspaper, did not follow the standardization of its safety towards its consumers with respect to its growth. The monitoring management of the various programs would have been thus altered, thus highlighting several flaws:

  • Failure to comply with banking secrecy and the anti-money laundering compliance program;
  • there would be insufficient staff to ensure the fight against money laundering;
  • the transaction monitoring system is not adequate for the size of the company;
  • general policies that do not comply with IT security and virtual currency regulations.

The main emphasis is on Consumer protection which, in the event of an anomaly, finds himself isolated. The current legislation, in fact, would like the cryptocurrency service to have a dedicated telephone number to receive consumer complaints.

Crypto Winter appears to be falling Robin Hood, the gossip even hypothesized, wrongly, the acquisition of 7.6% of the company by FTX. In addition to this penalty, the number of monthly active users on the platform decreased by 25% in the first quarter. His income followed the fall of cryptocurrencies. They dropped by 47%.

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