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 mentioned it obtained an investigative subpoena from the U.S. Securities and Alternate Fee (SEC) regarding varied issues comparable to cryptocurrency listings, crypto custody practices, and platform operations.
The corporate mentioned it obtained the subpoena in December 2022 following the collapse of FTX in November (and the collapse of different corporations in the summertime).
Robinhood mentioned it might face sanctions if the SEC or any courtroom determines it has not complied with securities laws. The corporate additionally mentioned that if its listed cryptocurrencies are decided to be securities, it might be prevented from supporting the buying and selling of these belongings. Moreover, Robinhood mentioned it might be compelled to pay regulatory penalties and compensation to its customers.
Robinhood made the above statements inside its 10-Okay submitting — a required annual report for publicly- and privately-traded corporations. Although the submitting considerations the fiscal 12 months ending in December 2022, the submitting was not submitted or publicized till as we speak.
Regardless of the SEC’s obvious involvement with Robinhood, there isn’t a indication that the regulator plans to take motion towards the agency instantly. The corporate mentioned it cooperates with all investigations in as we speak’s submitting.
The information has minimally affected the worth of firm shares, if in any respect. Robinhood inventory (HOOD) is up 1.36% as we speak however down 0.62% after hours.
