Robinhood Improves Security With Chainalysis Partnership
- Robinhood will adopt Chainalysis’ Know-Your-Transaction monitoring solution and its Rector investigations software.
- The partnership was made ahead of Robinhood’s launch of its crypto wallet, which has gathered a waitlist of over 1.6 million people.
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Popular trading app Robinhood is partnering with blockchain analytics platform Chainalysis to meet regulatory compliance requirements ahead of its crypto wallet release, Chainalysis said in a blog post on 13 December.
According to the announcement, Robinhood has been experiencing a massive growth in crypto trading and demand, which has required an increased attention toward regulatory compliance standards. With that in mind, the trading app decided to integrate with Chainalysis’ comprehensive data set and real-time monitoring and investigative solutions ahead of the launch of its crypto wallet. The head of partnerships at Robinnhood Crypto, Ben Einstein, said in a statement:
“We have a strong ‘Safety First’ policy which guides our decision making and our customer’s safety as our number one priority. Chainalysis works closely with regulators and law enforcement to develop industry best practices and that approach is aligned with Robinhood’s commitment to working with policymakers in a collaborative manner.”
Robinhood and its wallet will leverage Chainalysis’ Know-Your-Transaction (KYT) solution to flag suspicious transactions in real time, enabling the app to combat money laundering more effectively. Robinhood will also use the Chainalysis Reactor investigations software, which will guide its security team through in-depth analysis of onchain data. The company further said it will be sending its teams to complete the Chainalysis certification programs.
First announced in September, the Robinhood Wallet will allow users to withdraw their digital assets off of the app, including Bitcoin (BTC), Ethereim (ETH), Dogecoin (DOGE), and others. The wallet is expected to roll out sometime in early 2022, and has already accumulated a waitlist of more than 1.6 million people.
- The U.S. Department of Justice has seized close to $470 million in Robinhood stock, and an additional $20 million in U.S. currency, as part of its criminal case against Sam Bankman-Fried.
- Lawyers for SBF argued last week that the Robinhood shares were bought legitimately by SBF, using money borrowed from Alameda, and that he was relying on them to fund his defense.
Former CEO of FTX Sam Bankman-Fried leaves the Federal Court in New York after pleading not guilty, 3 January, 2022.
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- Lawyers for SBF are seeking to block debtors from taking control over $450 million in Robinhood shares, arguing that SBF was relying on his stake to fund his criminal defense.
- Another argument was that SBF had legitimately bought the shares using money borrowed from Alameda Research, one of the few loans that was well documented in the company.
- While there are still two weeks to go, Chainalysis data shows October has already become the biggest month for crypto crime, with $718 million being stolen across 11 hacks.
- 2022 was also close to becoming the most profitable year for crypto criminals, with 125 hacks being responsible for the loss of $3 billion.