Chicago 12, Melborne City, USA

The division of Robinhood Crypto fined for 30 million dollars

Robinhood, a US stock trading application with over twenty million users, has been fined by the Department of Financial Services of the State of New York (NYDFS) for alleged violations of anti-money laundering, information security and consumer protection laws.

The 30 million dollar fine relates in particular to Robinhood’s cryptocurrency trading unit and is the result of “serious deficiencies” within its “compliance function in multiple areas”.

Carenze nella sicurezza informatica

The announcement was made by NYDFS Superintendent Adrienne Harris, who confirmed that Robinhood Crypto will pay a $30 million fine to the state for not maintaining adequate cybersecurity measures and for violating some aspects of the Bank Secrecy Act (BSA ), oltre che gli obligazione antiriciclaggio (AML).

According to the consent order of the NYDFS, an examination of Robinhood Crypto conducted between January and September 2019 has found a violation of the department’s regulations regarding virtual currency, money transmitters, transaction monitoring and information security.

Consequently, the cryptocurrency unit of the society will have to assume an independent consultant to assess the company’s compliance and remedy efforts.

Another concern concerns the fact that the company has not provided a dedicated telephone number on its website that allows clients to submit complaints as part of a supervision agreement. In addition, the NYDFS claims that Robinhood Crypto’s anti-recycling program was “inadequate in terms of personnel” and was based on a manual system for monitoring transactions, even if the user base grew exponentially.

In addition to all the critical deficiencies in its cyber security program, the regulatory authority maintains that the lack of management and supervision, together with the “lack of promotion and maintenance of an adequate culture of compliance”, has led to a series of violations that have justified a pesante multa.

In addition, Robinhood has announced the licensing of almost a quarter of its staff due to economic conditions and the recent collapse of the cryptocurrency market. The news comes while the company registered a decrease of 44% of net revenues in the second quarter.

Le polemiche su Robinhood

In June last year, the US Financial Industry Regulatory Authority fined Robinhood 57 million dollars and ordered it to pay 12.6 million dollars in restitution, in addition to interest, to thousands of clients who “subito” un significant damage” a causa delle pratiche aziendali.

Si tratta della più grande multa che l’authorità di vigilanza abbia mai comminato a una società. Robinhood has also been accused of showing “systemic vigilance deficiencies” since September 2016.

At the beginning of this year, a federal tribunal of the United States rejected a case that accused Robinhood Markets Inc of violating the state laws limiting the sale of securities – a move that, according to the trader, would have caused losses. per milliard.

Il giudice capo Cecilia Altonaga has concluded che gli investors al detail they cannot present requests for compensation for negligence and violation of fiduciary duty in the company, citing the agreement with the clients of Robinhood that consents to limit exchanges.

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