Robinhood’s crypto unit fined for violating cybersecurity rules

The New York State Department of Financial Services levied a $30 million fine on the cryptocurrency trading unit of online brokerage Robinhood Markets Inc. (NASDAQ: HOOD) for allegedly violating anti-money-laundering and cybersecurity regulations.

This is the department’s first crypto enforcement action. The Department of Financial Services said that Robinhood Crypto didn't hire sufficient staff and didn't invest in other resources for its anti-money-laundering and cybersecurity compliance programs.

A subsequent investigation found Robinhood's transaction monitoring system had "significant deficiencies," and it didn't sufficiently train its employees.

Robinhood also, it is said, failed to comply with some consumer protection requirements by not maintaining a dedicated phone number on its website and violated some reporting requirements.