Robinhood has hired a former top Grayscale executive and former Ripple adviser
Online broker Robinhood has brought in Benjamin Melnicki as its chief compliance officer. It was reported by the WSJ, citing a company spokesperson.
The new hire will join Robinhood Crypto's cryptocurrency division. He will take the place of Scott Hershorin, who left the company in June to join Dragonfly Capital Partners as director of legal compliance.
Melnicki previously held a similar position at Grayscale Investments. Prior to that, he worked at Bank of America and as a regulatory advisor at Ripple Labs and Blockchain.com.
A Grayscale spokeswoman confirmed Mielnicki's departure in a comment to the publication and said the company was looking for a new employee to take his place.
On June 1, 2021, it became known that Robinhood would pay a record $70 million fine to settle with FINRA. In the spring, the firm estimated these costs at $26.6 million.
In July, the online broker raised the potential fine from NYDFS from $15 million to $30 million. The service had questions about Robinhood's Crypto division regarding cybersecurity and anti-money laundering.
As a reminder, Robinhood held an IPO on Nasdaq on 29 July. On August 4, the US exchange stopped trading in the company's securities three times due to high volatility.
Robinhood CEO Vlad Tenev said that the online broker will expand its offering in digital assets, as it considers cryptocurrencies to be the cornerstone of its future development.
In September, Robinhood confirmed rumours of testing a cryptocurrency wallet. Prior to that, Bloomberg discovered a test solution in the code of an iOS app to protect users from the volatility of digital assets. The platform launched the feature in mid-September.