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Crypto News

Robinhood Crypto Faces More Legal Trouble: SEC Launches Probe

Author

Jay Solano

Tags

Reading time

1 min
Last update

Author

Jay Solano

Tags

Reading time

1 min
Last update

Author

Jay Solano

Tags

Reading time

1 min
Last update

https://twitter.com/mpost_io/status/1630311626837467137

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Robinhood Markets disclosed that it had received an investigative subpoena from the United States Securities and Exchange Commission into its digital asset business’s crypto listings, custody, and platform operations.

The brokerage claimed in a 10-K filing that it received the investigative subpoena in December, a month after cryptocurrency exchange FTX declared bankruptcy and after “several other major cryptocurrency trading venues and lending platforms earlier in 2022,” such as Three Arrows Capital, Voyager Digital Holdings, and Celsius Network, filed for bankruptcy.

Following last year’s crypto bankruptcies, they received an investigative subpoena related to their cryptocurrency listings and custody services. The SEC issued the subpoena in December 2022, which inquired about RHC’s supported cryptocurrencies, cryptocurrency custody, and platform operations, among other topics.

The California Attorney General’s Office served subpoenas on Robinhood in April 2021, requesting information about its cryptocurrency branch’s trading platform, company, operations, asset custody, and coin listings.

The New York Division of Financial Services fined Robinhood’s cryptocurrency subsidiary $30 million on August 2 for failing to “invest the necessary resources and attention to build and maintain a culture of compliance.”

In August 2021, the Massachusetts Securities Division investigated the firm for allegedly preying on novice investors.

A court will issue an investigative subpoena at the request of another person or organization in order to gather the evidence required to determine whether to file a lawsuit against the subject of the subpoena.