Buying and selling app supplier Robinhood was subpoenaed by U.S. securities regulators late final yr, in keeping with a submitting submitted by the corporate on Feb. 27.
In that submitting, Robinhood mentioned it acquired an investigative subpoena from the U.S. Securities and Change Fee (SEC) regarding numerous issues similar to cryptocurrency listings, crypto custody practices, and platform operations.
The corporate mentioned it acquired the subpoena in December 2022 following the collapse of FTX in November (and the collapse of different firms in the summertime).
Robinhood mentioned it might face sanctions if the SEC or any courtroom determines it has not complied with securities rules. The corporate additionally mentioned that if its listed cryptocurrencies are decided to be securities, it may very well be prevented from supporting the buying and selling of these belongings. Moreover, Robinhood mentioned it may very well be pressured 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 considerations the fiscal yr ending in December 2022, the submitting was not submitted or publicized till immediately.
Regardless of the SEC’s obvious involvement with Robinhood, there is no such thing as a indication that the regulator plans to take motion in opposition to the agency instantly. The corporate mentioned it cooperates with all investigations in immediately’s submitting.
The information has minimally affected the worth of firm shares, if in any respect. Robinhood inventory (HOOD) is up 1.36% immediately however down 0.62% after hours.