- 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.
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