The New York State Department of Financial Services (NYDFS) fined Robinhood’s crypto unit $30 million for violations of AML rules and cybersecurity policy, Wall Street Journal reports.
The NYDFS found non-compliance following a supervisory examination. This marks the regulator’s first enforcement action against the crypto industry.
The department cited Robinhood’s non-compliance with the Bank Secrecy Act and anti-money-laundering (AML) requirements.
“The firm’s cybersecurity program did not adequately account for operational risks, and its policy did not comply with cybersecurity and virtual currency rules,” the NYDFS added.
The investigation also found that the absence of a dedicated consumer-complaint phone number on Robinhood’s website violates users’ rights.
Robinhood will now be required to hire an independent consultant to assess its compliance with regulatory rules.
As Bloomberg reported in June, the FTX exchange was studying the possibility of acquiring Robinhood. Later, the CEO of the trading platform, Sam Bankman-Fried denied the report.
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