Crypto Investigator Alleges Robinhood’s Involvement in Illicit Fund Flow

  • TruthLabs raised suspicions about Robinhood’s involvement in facilitating illicit crypto funds.
  • The detective cited a $544 million flow from FTX customer funds to Robinhood.
  • Also, the connection between Robinhood’s UK expansion plans and FTX’s UK deal was scrutinized.

TruthLabs, a prominent crypto sleuth, has raised suspicions regarding the potential role of Robinhood, a U.S.-based clearing house, in facilitating the movement and acceptance of illicit cryptocurrency funds. 

Citing Sunil, an activist for FTX creditors, TruthLabs highlighted a concerning flow of $544 million from FTX customer funds through various channels, ultimately landing in Robinhood.

The investigation dates back to early 2023 when a wallet linked to Robinhood’s public exchange address received over $400 million in Ethereum (ETH) from American exchange Gemini. TruthLabs noted the inflow came a month after Robinhood launched its crypto wallet to millions of users. 

According to the investigator, the same wallet address transferred approximately $140 million to an address associated with the entity that exploited the Bitmart Exchange.

Furthermore, TruthLabs highlighted Robinhood’s history when the firm faced financial turbulence and regulatory scrutiny in early 2020. The issue resulted in a record $57 million fine by FINRA in June 2021.

Moreover, the investigator cited that in August 2022, Robinhood’s cryptocurrency division faced a $30 million penalty from the New York State Department of Financial Services for alleged anti-money laundering and cybersecurity regulations violations.

Additionally, TruthLabs highlighted FTX’s involvement with AMC, where the platform was engaged in printing and trading leveraged AMC tokens on the blockchain. The investigator further disclosed that on May 1, 2023, Robinhood erroneously applied a bankruptcy tag to AMC stock on their platform.

Besides, recent revelations from Sunil have shed light on FTX’s murky dealings. In particular, FTX’s recent sale of a UK business for $33 million prompted questions about the connection between Robinhood’s UK expansion plans and FTX’s UK deal.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

Comments

Post a Comment

Popular posts from this blog

Analyst: ETH Not Ready for Bull Run till Huge Correction

Image
Benjamin Cowen, a cryptocurrency strategist, is bearish on Ethereum (ETH) because the second-largest digital asset has failed to climb back above a key resistance level. In a new video, Cowen tells his 785,000 YouTube subscribers that the price of Ethereum is likely to go down because there is a lot of “anxiety” around the $1,800 mark. Cowen says that there isn’t as much “apathy” in the market as there was during the bear season of 2019/2020. “There’s so much anxiety in this level [$1,800 resistance level] like I think it’s much more likely to break down eventually… I will be the first to admit it’s taking longer than I thought it would. But I also don’t really feel that same type of apathy in the market now that I did back in 2019 and 2020.” At the time of writing, one Ethereum is worth $1,736. Cowen says that less people would care about Ethereum if the price of the second most valuable cryptocurrency fell to triple digi...
Read more

Crypto Analyst Says Selling XRP Now Is Unwise, the Bulls Are Set

Image
Ben Armstrong argued that selling XRP is unwise due to perceived underperformance. He dismissed comparing XRP to Solana (SOL) and Avalanche (AVAX). Armstrong claimed XRP’s uptrend would commence in January, urging investors to pack their bags. In a recent YouTube video, crypto analyst Ben Armstrong argued that selling XRP is unwise due to perceived underperformance. While acknowledging XRP’s historical lackluster trend, he first addressed concerns related to XRP’s failure to sustain its bullish momentum following the victory from the legal dispute. Armstrong argued that broader market conditions suppressed further gains. Furthermore, he countered critical views about XRP’s failure to engineer a bullish trajectory like other rivals such as Solana (SOL) and Avalanche (AVAX), which have seen more than 100% gains.   He dismissed such comparisons and drew parallels to Ethereum’s delayed ascent in previous cycles. Moreover, he caution...
Read more

BitBoy dismissed from FTX case as three celebrities settle

The legal fallout from the collapse of crypto exchange FTX continues, with some high-profile names opting to settle while others are dismissed entirely. Crypto influencer Ben “BitBoy” Armstrong is no longer facing a lawsuit related to his promotion of FTX. Lawyers recently filed notice that they are voluntarily dismissing claims against him. Armstrong had not yet responded to the allegations in court. Meanwhile, Jacksonville Jaguars quarterback Trevor Lawrence, YouTuber Kevin Paffrath, and influencer Tom Nash have agreed to confidential settle ments to resolve claims against them. A judge still needs to approve the deals to officially remove them from the ongoing litigation. According to recent reports, lawyers leading the case say they are in discussions about potential settle ments with other celebrities who promoted FTX, including athletes and social media stars. More deals are likely to come. The lawsuit aims to claw back money paid to celebrity endorsers and spo...
Read more