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Robinhood’s crypto enterprise obtained SEC subpoena


Robinhood Markets Inc. disclosed in a submitting late Monday it obtained a subpoena from securities regulators relating to its cryptocurrency listings, custody of cryptocurrencies and platform operations, amongst different matters.

The U.S. Securities and Trade Fee’s subpoena arrived in December, shortly after FTX Buying and selling Ltd. and different crypto corporations filed for chapter, Robinhood
stated in its annual report.

If the SEC or a courtroom determines that any cryptocurrencies supported by Robinhood’s platform are securities, it may stop the corporate “from persevering with to facilitate buying and selling of these cryptocurrencies (together with ceasing help for such cryptocurrencies on our platform),” the corporate stated within the submitting.

Learn: Robinhood unintentionally bought brief on a meme inventory and misplaced $57 million

Earlier this month, Robinhood’s board licensed the repurchase of greater than 50 million shares that had been purchased by Sam Bankman-Fried, founding father of the failed cryptocurrency change FTX Ltd., which the Justice Division had seized.

After FTX filed for chapter in November and following the bankruptcies of a number of different crypto-trading corporations, together with Three Arrows Capital Ltd., Voyager Digital Holdings,Inc. and Celsius Community LLC, Robinhood obtained an investigative subpoena from the SEC relating to, amongst different matters, Robinhood Crypto LLC’s “cryptocurrency listings, custody of cryptocurrencies and platform operations,” the corporate stated within the submitting.

Robinhood stated it ended 2022 with $6.3 billion in money and money equivalents and $2.91 billion out there beneath credit score amenities. The corporate reported a web lack of $1.17 a share on income of $1.36 billion, in contrast with a web lack of $7.49 a share on income of $1.82 billion.

Shares of Robinhood dropped 0.6% within the prolonged session Monday after ending the common buying and selling day up 1.4%.

Robinhood shares have declined 16.3% over the previous 12 months, proper on par with the 16.3% decline by the tech-heavy Nasdaq Composite Index
whereas the S&P 500
has declined 9.2%.

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