Robinhood Markets Gets SEC Warning Tied to Crypto BusinessRobinhood Markets Gets SEC Warning Tied to Crypto Business
The notice from the regulator concerns Robinhood Crypto and its cryptocurrency listings, custody of cryptocurrencies and platform operations.
May 6, 2024
Rick Green
(Bloomberg) -- Robinhood Markets Inc. has been formally warned by regulators that it may face an enforcement action tied to its cryptocurrency dealings.
The so-called Wells notice from the US Securities and Exchange Commission concerns Robinhood Crypto and its cryptocurrency listings, custody of cryptocurrencies and platform operations, the company said in a regulatory filing Monday. The agency’s staff told Robinhood that it made a “preliminary determination” to recommend that the SEC file an enforcement action.
The result could be an injunction, a cease-and-desist order, disgorgement and other penalties or limits on activities, according to the filing. The company was previously subpoenaed and has cooperated with the investigation, Robinhood said.
A Wells Notice comes gives a company time to rebut the agency’s allegations and doesn’t necessarily indicate an enforcement action will follow.
