The New York State Department of Financial Services (NYDFS) has fined Robinhood’s crypto division $30 million for violating anti-money laundering and cybersecurity regulations.
The NYDFS found the violations through a supervisory exam and a subsequent enforcement investigation.
The NYDFS said that Robinhood’s Bank Secrecy Act and anti-money-laundering compliance programs weren’t adequately staffed.
The NYDFS added that the firm’s cybersecurity program didn’t properly address the company’s operational risks, nor did its policies comply with the regulator’s cybersecurity and virtual currency regulations.
The investigation also found that by not having a dedicated phone number on its website for consumer complaints, Robinhood had failed to comply with consumer-protection requirements.