Robinhood sets aside $15m for NYDFS settlement

Robinhood, a crypto-friendly platform, valued the minimum possible costs at $15 million for a ‘principled settlement’ of NYDFS claims.

The NYDFS raised questions for Robinhood Crypto about cybersecurity and anti-money-laundering controls. The information is contained in the filing for the Form S-1 initial public offering.

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

In 2020, to settle the NYDFS dispute, the firm reserved $10 million, with an additional $5 million in Q1 2021. Robinhood declined to provide projections for the outcome of regulator talks.

As reported on June 1, the platform will pay a record $70 million fine to settle the dispute with FINRA. In March, Robinhood estimated these costs at $26.6 million.

Earlier the firm said that 17% of total revenue of $522 million came from crypto transactions (October–December 2020: 4%).

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