Robinhood subpoenaed by SEC over crypto listings and custody

Robinhood Markets has revealed that it has received an investigative subpoena from the US Securities Exchange Commission into its digital asset company’s crypto listing, custody and platform activities.

In a 10-K filing, the brokerage said it received the investigation subpoena in December, a month after crypto exchange FTX filed for bankruptcy and following the bankruptcy filings of “several other major cryptocurrency trading and lending platforms earlier in 2022,” including Three Arrows Capital, Voyager Digital Holdings and Celsius Network.

The investigative subpoena related to the cryptocurrency listings and custody services, which they say came in response to last year’s crypto bankruptcies:

“In December 2022, following the 2022 Crypto bankruptcies, we received an investigative subpoena from the SEC regarding RHC-backed cryptocurrencies, custody of cryptocurrencies, and platform operations, among others.”

In April 2021, Robinhood received subpoenas from the California Attorney General’s Office seeking information regarding its trading platform, operations and activities of its crypto arm, custody of client assets, and coin listings.

Robinhood’s crypto division was fined $30 million by the New York District of Financial Services on August 2 for failing to invest the proper resources and attention to develop and sustain a culture of compliance.

The brokerage also came under scrutiny from the Massachusetts Securities Division in August 2021 for allegedly targeting inexperienced investors.

Investigative subpoenas are issued by a court at the request of another person or entity to obtain the information necessary to decide whether to take legal action against the subpoenaed person or entity.

Cointelegraph reached out to Robinhood, but the company declined to comment on the matter.






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