Robinhood Crypto Unit Hires New Compliance Chief From Grayscale

Robinhood Markets Inc. hired Benjamin Melnicki to run compliance in its crypto division as regulators are stepping up their scrutiny of digital currencies as well as the firm’s trading platform.

Melnicki joined Robinhood Crypto this week, a spokeswoman for the Menlo Park, California-based brokerage said Friday. He previously oversaw compliance at Grayscale Investments, a company that sells virtual currency investment products -- a role he took in January. Before that he headed regulatory affairs in the Americas for Ripple Labs. Melnicki succeeds Scott Hershorin, who left in June, according to his LinkedIn profile.

The New York State Department of Financial Services accused Robinhood’s crypto division of violating anti-money laundering rules, an infraction for which the company expected to pay a penalty of $30 million and bring on a monitor, according to a regulatory filing.

Read more: Cryptocurrency Stocks Slump as China Extends Its Crackdown

The Wall Street Journal reported Melnicki’s hiring earlier.

To contact the reporter on this story:
Annie Massa in New York at amassa12@bloomberg.net

To contact the editors responsible for this story:
Sam Mamudi at smamudi@bloomberg.net

Peter Eichenbaum

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