Robinhood Markets has revealed that it has obtained an investigative subpoena from america Securities Trade Fee over its digital asset enterprise’ crypto listings, custody and platform operations.
In a 10-Ok submitting, the brokerage mentioned it obtained the investigative subpoena in December, a month after crypto change 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 companies, which they mentioned got here in response to the crypto bankruptcies final 12 months:
“In December 2022, following the 2022 Crypto Bankruptcies, we obtained an investigative subpoena from the SEC relating to, amongst different matters, RHC’s supported cryptocurrencies, custody of cryptocurrencies, and platform operations.”
In April 2021, Robinhood received subpoenas from the California Legal professional Common’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 effective by the New York District of Monetary Providers on Aug. 2 for failing to “make investments the correct sources 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 courtroom on the request of one other individual or entity for the needs of acquiring the knowledge essential to resolve whether or not to pursue authorized motion in opposition to the subpoenaed individual or entity.
Cointelegraph reached out to Robinhood however the agency declined to touch upon the matter.
