Robinhood Markets has revealed thait had obtained an investigative subpoena from the US Securities Change Fee (SEC) over its digital asset enterprise’ crypto listings, custody and platform operations.
In a 10-Okay submitting, the brokerage mentioned it obtained the investigative subpoena in December shortly after crypto alternate FTX filed for chapter in November, and after “a number of different main cryptocurrency buying and selling venues and lending platforms earlier in 2022,” together with Three Arrows Capital, Voyager Digital Holdings and Celsius Community.
The investigative subpoena was in relation to its cryptocurrency listings and custody companies, which they mentioned got here in response to the crypto bankruptcies final yr:
“In December 2022, following the 2022 Crypto Bankruptcies, we obtained an investigative subpoena from the SEC relating to, amongst different subjects, RHC’s supported cryptocurrencies, custody of cryptocurrencies, and platform operations.”
In April 2021, Robinhood obtained subpoenas from the California Lawyer Basic’s Workplace in search of details about its crypto arm’s buying and selling platform, enterprise and operations, custody of buyer belongings and coin listings.
Robinhood’s crypto division was hit with a $30 million advantageous by the New York District of Monetary Companies (NYDFS) on Aug. 2 for failing to “make investments the correct sources and a focus to develop and preserve a tradition of compliance.”
The brokerage was additionally scruitinized by the Massachusetts Securities Division (MSD) in August, 2021 for allegedly concentrating on inexperienced traders.
Investigative subpoenas are issued by a courtroom on the request of one other particular person or entity for the needs of acquiring the knowledge essential to resolve whether or not to pursue authorized motion in opposition to the subpoenaed particular person or entity.
Cointelegraph reached out to Robinhood however the agency declined to touch upon the matter.
English