Buying and selling app supplier Robinhood was subpoenaed by U.S. securities regulators late final 12 months, based on a submitting submitted by the corporate on Feb. 27.
In that submitting, Robinhood stated it obtained an investigative subpoena from the U.S. Securities and Change Fee (SEC) regarding numerous issues resembling cryptocurrency listings, crypto custody practices, and platform operations.
The corporate stated it obtained the subpoena in December 2022 following the collapse of FTX in November (and the collapse of different firms in the summertime).
Robinhood stated it might face sanctions if the SEC or any court docket determines it has not complied with securities laws. The corporate additionally stated that if its listed cryptocurrencies are decided to be securities, it could possibly be prevented from supporting the buying and selling of these belongings. Moreover, Robinhood stated it could possibly be compelled to pay regulatory penalties and compensation to its customers.
Robinhood made the above statements inside its 10-Ok submitting — a required annual report for publicly- and privately-traded firms. Although the submitting issues the fiscal 12 months ending in December 2022, the submitting was not submitted or publicized till right this moment.
Regardless of the SEC’s obvious involvement with Robinhood, there isn’t any indication that the regulator plans to take motion in opposition to the agency instantly. The corporate stated it cooperates with all investigations in right this moment’s submitting.
The information has minimally affected the worth of firm shares, if in any respect. Robinhood inventory (HOOD) is up 1.36% right this moment however down 0.62% after hours.
