Robinhood customers have assets held and transactions processed by a labyrinth of opaque service providers, including Jump Crypto.
Robinhood wanted Ziglu for $170 million in April but now says it will pay just $72.5 million, leaving Ziglu investors way down on the deal.
Robinhood’s compliance program was understaffed and the company was too slow in moving away from its manual transaction monitoring system.
The exact terms of the deal have not been disclosed but as of September last year, Ziglu was valued at somewhere in the region of $111 million.
Robinhood stock has collapsed more than 60% since its IPO last July, and fleeting crypto trade volumes haven’t been enough to turn the tide.
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