Robinhood reveals SEC subpoena in 10-Ok submitting

Robinhood reveals SEC subpoena in 10-Ok submitting
US-based retail buying and selling app Robinhood has revealed that it acquired a subpoena from the SEC over crypto custody and listings.


The USA Securities Alternate Fee has subpoenaed Robinhood Markets in December 2022, a month after cryptocurrency trade FTX filed for chapter and shook the complete market. Firms corresponding to Three Arrows Capital, Voyager Digital Holdings and Celsius Community filed for chapter even earlier. Robinhood Markets revealed the investigative subpoena as a part of a 10-Ok submitting, and firm representatives clarified that it had one thing to do with its cryptocurrency listings and custody companies. 

These investigative subpoenas are issued by a court docket on the request of one other entity or individual. Their function is to acquire data that may help the court docket in deciding whether or not to pursue authorized motion in opposition to the subpoenaed individual or entity. 

This isn’t the primary time that Robinhood has had authorized troubles. In response to WSJ, in August 2022, the corporate acquired a USD 30 million advantageous from the New York Division of Monetary Providers (NYDFS) for alleged violations regarding anti-money laundering, shopper safety, and cybersecurity legal guidelines. 

An order from the NYDFS has revealed that the division examined Robinhood Crypto between January 2019 and September 2019. These examinations revealed deficiencies in RHC’s compliance perform throughout a number of areas, which prompted the NYDFS to start an enforcement investigation. In flip, this investigation dropped at gentle that Robinhood’s crypto division violated features of the Financial institution Secrecy Act and Anti-Cash Laundering laws.


Robinhood reveals SEC subpoena in 10-Ok submitting


Different Robinhood developments

In August 2022, Robinhood determined to fireplace an extra 713 individuals after it had already lowered its headcount by 9% three months prior. The downsizing had one thing to do with the freefall of cryptocurrency values and an unstable inventory market, each of which have saved prospects off the Robinhood buying and selling app. 

In January 2023, Robinhood revealed its plans to discontinue assist for Bitcoin SV because it needed to take away it from the platform. The corporate halted assist for Bitcoin SV on 25 January 2023, and any BSV cash left over in buyer accounts after that date have been mechanically offered as a way to credit score account holders. Customers have been nonetheless capable of purchase, promote, switch, and maintain BSV till the deadline. 

BSV was the one coin that was impacted by the delisting in line with Robinhood. The platform nonetheless affords buying and selling on 19 totally different tokens by way of the Robinhood Crypto service, together with Bitcoin and Bitcoin Money. The platform additionally supplies entry to belongings corresponding to shares, ETFs, and direct cryptocurrency buying and selling, in addition to choices buying and selling.

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