Robinhood Crypto Fined $30 Million for AML Violations in NY

~2 min read | Published on 2022-08-18, tagged CryptocurrencyExchangePaid-Fine using 273 words.

In August 2022, New York State’s Department of Financial Services (“DFS”) announced that Robinhood Crypto agreed to pay a $30 million fine for failing to comply with anti-money laundering and cybersecurity regulations.
“As its business grew, Robinhood Crypto failed to invest the proper resources and attention to develop and maintain a culture of compliance—a failure that resulted in significant violations of the Department’s anti-money laundering and cybersecurity regulations,” Superintendent of Financial Services Adrienne A. Harris said. “All virtual currency companies licensed in New York State are subject to the same anti-money laundering, consumer protection, and cybersecurity regulations as traditional financial services companies. DFS will continue to investigate and take action when any licensee violates the law or the Department’s regulations, which are critical to protecting consumers and ensuring the safety and soundness of the institutions.”
New York’s DFS discovered “significant” violations of the Department’s Virtual Currency Regulation (23 NYCRR Part 200), Money Transmitter Regulation (3 NYCRR Part 417), Transaction Monitoring Regulation (23 NYCRR Part 504), and Cybersecurity Regulation (23 NYCRR Part 500) during an audit in 2020.

Still not fined for freezing certain trades though

According to the DFS, Robinhood Crypto monitored transactions manually. The Department that monitored transactions was understaffed. With more than 100,000 transactions a day, there was a backlog of transactions waiting to be reviewed. Robinhood failed to “foster and maintain an adequate culture of compliance.” What…?
As a part of the settlement, Robinhood Crypto will need to hire an independent consultant to evaluate the company’s compliance with New York’s money laundering regulations.

Comments (5)


How some of these folks on here obtain a computer and internet access while not being able to construct a full sentence of any kind is a miracle of God. After reading these comments and considering the above statement, I believe in: God, Allah and even Joseph Smith with his magical hat filled with golden plates. Yes my comrades we are truly blessed apparently… DNL even ungrounded US! Score!!!

Mickey D’s2022-08-19

Nah, Mickey D’s manger gotta keep a closer eye on their computer during break

Clever setup2022-08-19

“foster and maintain an adequate culture of compliance,” yep they are saying the understaffing was intentional and that the few transaction review guys; siting around getting stoned, eating gummy bears and playing video games, were just a clever attempt by Robinhood to cover themselves from LE. I’m guessing LE had a pretty good case that any reasonable person would have been well aware of the understaffing and thus the money laundering charge (which most folks due an average of 5.5 years in prison for in the US). ***Make a 100 million and tip LE 30 million, beats the shit out of 5 years in prison and LE seizing the whole 100 million. A very clever setup, setting a precedent we will likely see repeat in the near future.***


when I saw the diamond, I thought maybe the article would be about ($HACD), the 1st PowNFT. But no, just stupid robbinhood.

HACD (BS)2022-08-20

idk about , looks like someone advertising a Chinese racket. Although, back in the day some poor stoner traded 10,000 BTC for 2 pizzas so it’s hard to say for sure. They have only traded 1.3K on opensea in comparison to cryptopunks 987K on opensea, I’d buy other NFTs. BTC really took off after about 3 years so we’re approaching that bullshit time clock quickly with the “HACD” claim of one day surpassing BTC.