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Robinhood obtained SEC subpoena shortly after FTX collapsed


Vlad Tenev, CEO and cofounder of Robinhood, throughout an interview on the firm’s headquarters. David Paul Morris—Bloomberg/Getty Photos

Robinhood, a preferred cell buying and selling platform for shares that additionally permits person to purchase and promote cryptocurrency, obtained an investigative subpoena from the U.S. Securities and Change Fee (SEC) in December 2022 concerning its cryptocurrency enterprise.

The subpoena requested for details about Robinhood’s “supported cryptocurrencies, custody of cryptocurrencies, and platform operations,” in response to the corporate’s annual report for 2022, which was filed on Monday.

The point out within the annual report was transient and didn’t specify why the subpoena was issued or what info the SEC was searching for.

A spokesperson for Robinhood declined to remark when contacted by Fortune. A spokesperson for the SEC informed Fortune that it “doesn’t touch upon the existence or nonexistence of a potential investigation.”

The subpoena, which got here shortly after cryptocurrency change FTX declared chapter in November 2022, comes as Robinhood struggles to reinvent its crypto enterprise. The corporate reported persevering with declines in its crypto buying and selling income within the fourth quarter of 2022 and has tried to shed its affiliation with Sam Bankman-Fried, the disgraced founding father of FTX, after its board permitted plans to purchase again the greater than $550 million-worth of shares Bankman-Fried had purchased earlier on in 2022.

The SEC’s subpoena additionally comes amid a broader push by the company to analyze, and in lots of circumstances punish, crypto and crypto-adjacent firms.

In January, the SEC charged each Gemini, a cryptocurrency change based by the Winklevoss twins, in addition to Genesis, owned by famed cryptocurrency investor Barry Silbert, with the unregistered providing and sale of securities via the businesses’ joint yield-bearing product: Gemini Earn.

In February, the federal government arm accountable for overseeing the securities market reached a $30 million settlement with Kraken, one of many largest cryptocurrency exchanges, after it claimed that the change’s staking characteristic was a securities providing.

And most just lately, the SEC reportedly informed Paxos, a stablecoin issuer, that it supposed to sue the corporate for its work on BUSD, a stablecoin pegged to the U.S. greenback that was issued in partnership with Binance, the world’s largest cryptocurrency change by buying and selling quantity. Paxos is reportedly in dialog with the SEC over the lawsuit risk.

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