RIYADH: Bitcoin, the main cryptocurrency internationally, traded increased on Wednesday, rising by 0.01 p.c to $22,847, as of 7:56 a.m. Riyadh time.
Ethereum, the second most traded cryptocurrency, was priced at $1,615 rising by 2.61 p.c, in accordance with knowledge from Coindesk.
Robinhood to slash 23 p.c of its workforce after income drop
As it introduced its earnings a day early, Robinhood Markets Inc. decreased 23 p.c of its employees as a consequence of declining buying and selling exercise and a 44 p.c drop in income, in accordance with Reuters.
The firm was scheduled to report earnings on Aug. 3 however launched them a day early after publishing a weblog put up in regards to the reorganization and job cuts.
In its newest submitting with the US Securities and Exchange Commission, Menlo Park, California-based brokerage reported web income of $318 million, down from $565 million a yr earlier.
In addition to the 9 p.c of full-time employees laid off earlier this yr, the corporate will lay off 780 extra workers. As half of its efforts to drive larger value self-discipline, it’s going to additionally change its organizational construction.
Compared to the identical interval final yr, Robinhood’s complete working bills elevated 22 p.c. Approximately $30 million to $40 million will probably be spent on the reorganization, Robinhood stated.
There was a web loss of $295 million for the corporate. According to Refinitiv IBES knowledge, excluding restructuring prices, Robinhood’s loss per share was 32 cents, in contrast with analyst expectations of 37 cents.
Robinhood’s shares have been down practically 1 p.c at $9.15 in after-hours buying and selling.
In Robinhood’s three foremost enterprise traces of choices, equities, and cryptocurrencies, transaction-based revenues fell 55 p.c, with crypto transaction revenues declining 75 p.c.
In the second quarter of 2021, Robinhood had 21.3 million month-to-month energetic customers, whereas in June 2022, the quantity dropped to 14 million.
New York State’s monetary regulator fines Robinhood $30m
A monetary regulator in New York State fined Robinhood Markets Inc’s crypto arm $30 million for alleged violations of anti-money laundering, cybersecurity, and shopper safety guidelines, Reuters reported.
Robinhood Crypto didn’t allocate sufficient sources to compliance and cybersecurity dangers, in accordance with the New York State Department of Financial Services.
Since final yr’s meme inventory frenzy, the net buying and selling app has been the topic of a number of regulatory probes.
Cheryl Crumpton, affiliate basic counsel of litigation and regulatory enforcement at Robinhood stated: “We are pleased the settlement in principle reached last year and previously disclosed in our public filings is now final.”
As Crumpton identified, the corporate has made “significant progress” in constructing its authorized, compliance, and cybersecurity packages.
NYDFS additionally stated Robinhood Crypto would wish to rent an impartial marketing consultant to evaluate its compliance practices as half of the settlement.
– With enter from Reuters.