Robinhood doubles potential NYDFS penalty

The crypto-friendly platform Robinhood estimated the minimum possible costs of a ‘principled settlement’ of NYDFS claims at $30 million.

The agency raised questions to Robinhood Crypto’s unit regarding cybersecurity and anti-money laundering.

The agreement could also involve appointing an independent monitor to oversee the division’s operations.

In the previous version of the S-1 filing for the SEC was cited as a figure half as large.

In 2020, to settle the NYDFS dispute, the firm set aside $10 million, in the first quarter of 2021 — an additional $5 million.

On June 1, 2021, it emerged that Robinhood would pay a record $70 million to settle the dispute with FINRA. In March the firm estimated these costs at $26.6 million.

The company remains on track for a Nasdaq listing. The number and price range of the shares to be issued have not been determined. Goldman Sachs and JPMorgan will act as underwriters.

Earlier, Robinhood warned of lower revenue from cryptocurrency operations in the third quarter.

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