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The New York authorities fined the crypto platform Robinhood for $30 million

The New York authorities fined the crypto platform Robinhood for $30 million

The state's financial regulator said the company failed to enforce anti-money laundering and cybersecurity measures.

According to The Wall Street Journal, the New York State Department of Financial Services (NYDFS) imposed a $30 million fine on the cryptocurrency trading division of brokerage firm Robinhood Markets Inc. The regulator detected severe errors in Robinhood's operations during the audit caused by deficiencies in the company's management and compliance controls. Among such deficiencies, the regulator attributed the company's failure to allocate adequate resources to appropriate programs in the context of the company's rapid growth.

NYDFS also reported that the company's anti-money laundering compliance department was poorly staffed and failed to make a timely transition from a manual transaction monitoring system to one that was appropriate for the company's size. According to the newspaper, Robinhood is also accused of failing to protect consumer rights: the company did not include a separate telephone number on its website for consumer complaints.

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