Trading platform Robinhood received a subpoena from SEC.
California Attorney General’s office also issued a subpoena to Robinhood.
The leading trading platform, Robinhood Markets, revealed in its most recent 10-K filing that the U.S. Securities and Exchange Commission (SEC) issued an investigative subpoena regarding its crypto operations.
The brokerage received a subpoena from the SEC in December, just after the crypto exchange FTX filed bankruptcy protection on November 11, 2022. The subpoena inquired about “Robinhood’s platform operations, cryptocurrency custody, and cryptocurrency listings.”
SEC Probe into Robinhood
The moves from the SEC resulted in the biggest series of significant cryptocurrency exchange bankruptcies in 2022. And the collapse of Sam Bankman-Fried’s FTX led to a crypto crash and billion-dollar losses for creditors.
Further, the California Attorney General’s office also sent a subpoena to Robinhood concerning its trading platform, asset custody, client disclosures, and cryptocurrency listing. A subpoena is one of the potential risks to the company’s operations, as per various disclosures. The trading company declared that it is assisting with California’s probe.
Robinhood currently supports 18 cryptocurrencies in its trading platform, including Bitcoin (BTC), Ethereum(ETH), and memecoins such as Dogecoin (DOGE) and Shiba Inu (SHIB). Further, the Robinhood platform’s cryptocurrency trade reached $3.7 billion in the previous month, which soared over 95% from December 2022.