Robinhood subpoenaed by SEC over crypto listings and custody

Robinhood Markets has revealed that it has acquired an investigative subpoena from america Securities Alternate Fee over its digital asset enterprise’ crypto listings, custody and platform operations.

In a 10-Okay submitting, the brokerage mentioned it acquired the investigative subpoena in December, a month after crypto alternate FTX filed for chapter and following the chapter filings of “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 providers, which they mentioned got here in response to the crypto bankruptcies final yr:

“In December 2022, following the 2022 Crypto Bankruptcies, we acquired 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 received subpoenas from the California Lawyer Normal’s Workplace looking for 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 nice by the New York District of Monetary Providers on Aug. 2 for failing to “make investments the correct assets and a spotlight to develop and keep a tradition of compliance.”

The brokerage was additionally scrutinized by the Massachusetts Securities Division in August 2021 for allegedly focusing on inexperienced traders.

Investigative subpoenas are issued by a court docket on the request of one other individual or entity for the needs of acquiring the data essential to determine whether or not to pursue authorized motion towards the subpoenaed individual or entity.

Cointelegraph reached out to Robinhood however the agency declined to touch upon the matter.

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