- Robinhood was subpoenaed by the SEC over a cryptocurrency itemizing
- The subpoena was issued days after the collapse of the foremost crypto trade – FTX
Robinhood, a number one American monetary service supplier, disclosed a subpoena by the US Securities and Exchanges Fee (SEC). The disclosure made within the annual report acknowledged that it acquired an investigative subpoena associated to cryptocurrency itemizing and platform operations. Moreover, the agency additionally acknowledged that its popularity might stand to take injury due to a “extended weak point” within the cryptocurrency market.
At present, the monetary service supplier has 18 cryptocurrencies listed on its platform. However not all cash can be found for buying and selling in all states. Cryptocurrencies like Avalanche (AVAX), Cardano (ADA), Compound (COMP), Polygon (MATIC), Shiba Inu (SHIB), Solana (SOL), Stellar Lumens (XLM), Tezos (XTZ), and Uniswap (UNI) usually are not obtainable for buying and selling in New York. Whereas, Circle’s stablecoin USDC will not be obtainable for buying and selling in New York and Texas.
Robinhood attracts SEC’s consideration over crypto matter
In its report revealed on February 27, 2023, Robinhood acknowledged that it acquired an investigative subpoena in December 2022. This occurred proper after the collapse of a number one cryptocurrency trade – FTX, and several other different crypto-firms filed for chapter. The corporate additionally highlighted that its inventory had taken successful by almost 18 % when FTX halted funds withdrawals in November 2o22. Robinhood mentioned,
“shortly after FTX filed for chapter on November 11, 2022, and following the bankruptcies of a number of different main cryptocurrency buying and selling venues (…) we acquired an investigative subpoena from the SEC relating to, amongst different subjects, RHC’s cryptocurrency listings, custody of cryptocurrencies, and platform operations.”
Furthermore, the founding father of FTX – Sam Bankman-Fried – owned 7.6 % of Robinhood shares earlier than the trade went bust. The 55 million shares, price almost $575 million, are presently within the palms of the US Division of Justice. And, the agency is presently attempting to buy all or many of the shares held by the Justice Division. The choice to purchase them was made by the Board of Administrators in early February 2023.
Notably, Robinhood will not be the primary crypto service supplier to obtain a subpoena from the SEC. In August 2022, Coinbase, a number one U.S.-based crypto trade, disclosed an SEC subpoena. This too was associated to its cryptocurrency itemizing and operations.