Robinhood Received Subpoena From US SEC Over Crypto Business

Robinhood Markets (HOOD) received an investigative subpoena from the U.S. Securities and Exchange Commission regarding its crypto operations shortly after the FTX crypto exchange filed for bankruptcy protection in November, the popular trading platform revealed in its latest 10-K filing.

The subpoena concerned, among other things, Robinhood’s "cryptocurrency listings, custody of cryptocurrencies, and platform operations."

Robinhood also received similar subpoena requests from the California Attorney General's office regarding its trading platform, custody of customer assets, customer disclosures and coin listing. The company said it is cooperating with California’s investigation.

In its filing, Robinhood noted that to the extent the SEC or a court determines any cryptocurrencies it supports are securities, Robinhood could be forced to stop trading those cryptos. Such action could result in regulatory penalties, and judicial or administrative sanctions, etc.

Shares of Robinhood were down 0.5% in after-hours trading Monday after the filing was made.

(Source: CoinDesk)