The Crypto Weekly – August 3, 2022 Issue – Fin Tech

The below articles and industry developments have been identified
by Kelley Drye and Warren’s Blockchain and Cryptocurrency
practice group as relevant during the week of July 27 –
August 2. We hope you find this useful. Access may require
subscription.

Regulatory Updates

Robinhood’s Crypto Division Fined $30M by New York
Financial Regulator

CoinDesk, August 2, 2022

The New York State Department of Financial Services (NYDFS) fined
the crypto trading unit of Robinhood (HOOD) $30 million for alleged
violations of anti-money-laundering and cybersecurity regulations,
the Wall Street Journal reported on Tuesday.

• The fine, the first crypto-related enforcement action taken by
  the regulator, was handed because Robinhood Crypto LLC failed to
  maintain and certify compliant anti-money-laundering and
  cybersecurity programs, the report said.







• The NYDFS also said it found significant failures through a
  supervisory exam and through a subsequent enforcement investigation
  of Robinhood.







• Robinhood Crypto foresaw the fine and had said last year that
  it expects to be fined by the New York regulator. A 2020
  investigation “focused primarily on anti-money laundering and
  cybersecurity-related issues” found the company to be in
  violation of numerous regulatory requirements, the firm said last
  year.







• In 2021, the trading firm was fined $70 million by the
  Financial Industry Regulatory Authority (FINRA), the largest fine
  ever issued by FINRA, for…