In a current growth, Robinhood Markets has acquired a subpoena dealing with an investigation from the U.S. Securities and Exchange Commission (SEC) over its crypto operations like crypto itemizing, crypto custody, and many others.
In its newest 10K filings, the zero-commission brokerage app said that it acquired the investigative subpoena in December, a month after crypto alternate FTX filed for chapter. During the crypto winter of 2022, a lot of crypto buying and selling and lending platforms filed for chapter.
Robinhood famous that amid the crypto bankruptcies final yr, investigative subpoenas have are available relation to their crypto listings and custodial enterprise. It added:
“In December 2022, following the 2022 Crypto Bankruptcies, we received an investigative subpoena from the SEC regarding, among other topics, RHC’s supported cryptocurrencies, custody of cryptocurrencies, and platform operations.”
Robinhood vs Regulators
This is just not the primary time that Robinhood has been dealing with scrutiny from US regulators. Back in April 2021, Robinhood acquired subpoenas from the California Attorney General’s Office whereas searching for details about its crypto arms buying and selling platform, coin listings, custody of buyer belongings, and rather more.
Last yr in August 2022, the New York Department of Financial Services (NYDFS) slapped a $30 million nice on Robinhood for failing to “invest the proper resources and attention to develop and maintain a culture of compliance.”
Investigative subpoenas are the first steps towards acquiring the data essential to determine whether or not they wish to pursue authorized motion in opposition to the respective particular person or entity.
Robinhood Markets has been lately below the information particularly pertaining to the chapter proceedings of crypto alternate FTX. Earlier this month, Robinhood approved the buyback of Sam Bankman-Fried’s 55 million shares, value 7.6% stake in Robinhood. They mentioned that they might be buying the shares on the market worth. However, the timeline for a similar isn’t finalized but.
Vlad Tenev, CEO and Co-Founder of Robinhood Markets, mentioned: “We believe it will be accretive over time and removes a distraction for shareholders”.
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