“Robinhood Crypto” the cryptocurrency brokerage unit of trading app Robinhood is facing a $10 Million penalty by New York regulators. Robinhood Crypto is penalized for allegedly violating state rules on cybersecurity and anti-money laundering.
Robinhood Unable to Get Over GME & Dogecoin (DOGE) Saga
In January 2021, GameStop (GME) stock suffered a short squeeze primarily driven by a reddit group called Wallstreet aimed to bleed hedge fund and institutional short sellers. This group majorly consists of retail investors and Robinhood was one among key platforms where trading volumes were broke all time highs.
Similarly, following endorsements from Elon Musk retail interest in cryptocurrency Dogecoin (DOGE) spiked and reached an all time high price of $0.73. Dogecoin trading volume at Robinhood were off the charts as Dogecoin entered top 5 cryptocurrencies.
Source: Coinmarketcap
During the period Robinhood suffered several technical glitches and also halted crypto deposits. Traders
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