Robinhood and Fomo Accused of Meme Coin Loophole

Robinhood and Fomo, two popular financial apps, have been accused of allowing users to purchase meme coins using credit cards without proper Know-Your-Customer (KYC) verification.

The allegations come after users discovered they could buy meme coins, including dogwifhat (WIF), using Visa and Mastercard credit cards, Apple Pay, or Google Pay without completing any separate KYC identity verification.

According to the reports, the transactions were processed under merchant category code 5815, which covers digital goods and media, rather than the standard crypto categories that typically carry a crypto indicator and exclude purchases from card rewards.

Chase, JPMorgan's banking arm, reviewed the transactions and determined that the Visa purchases had been misclassified. The bank has formally filed a case inquiry with Visa and asked the network to investigate.

The New York State Attorney General's Office is also reviewing the payment structure.