Robinhood Markets has announced that it has received an investigation paper from the US Securities and Exchange Commission (SEC) due to its crypto operations such as crypto listing, crypto custody.
The exchange, known for its zero commission practice, announced that it received a subpoena a month after FTX filed for bankruptcy in its last 10k filing. As we have reported as Koinfinans.com, many exchanges and lending platforms filed for bankruptcy in 2022 for various reasons.
In December 2022, after the 2022 Crypto Bankruptcies, SECWe have received a subpoena of inquiry from RHC regarding, among other things, RHC’s supported cryptocurrencies, oversight of cryptocurrencies and platform operations.
Robinhood Faces Regulators
This isn’t Robinhood’s first problem with US regulators scrutiny. In April 2021, the exchange received a subpoena from the California Attorney General’s Office requesting information about coin listings, retention of client assets, and much more.
In August 2022 last year, the New York Department of Financial Services (NYDFS) fined Robinhood $30 million for “not investing appropriate resources and attention to develop and maintain a culture of compliance.”
Investigation subpoenas can be defined as the primary steps to obtain the necessary information to decide whether to initiate legal action against the person or organization concerned.
Koinfinans.com As we reported, Robinhood Markets has been the subject of news recently, especially regarding the bankruptcy proceedings of crypto exchange FTX. Earlier this month, the stock market Sam Bankman-Friedhas approved the repurchase of 55 million shares worth 7.6% of the stock market. They said they would buy the shares at market price. However, the timeline for this has not been finalized yet.
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