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In a current growth, Robinhood Markets has acquired a subpoena dealing with an investigation from the U.S. Securities and Exchange Commission (SEC) over its crypto operations like crypto itemizing, crypto custody, and many others.

In its newest 10K filings, the zero-commission brokerage app acknowledged that it acquired the investigative subpoena in December, a month after crypto change FTX filed for chapter. During the crypto winter of 2022, a lot of crypto buying and selling and lending platforms filed for chapter.

Robinhood famous that amid the crypto bankruptcies final 12 months, investigative subpoenas have are available in relation to their crypto listings and custodial enterprise. It added:

“In December 2022, following the 2022 Crypto Bankruptcies, we received an investigative subpoena from the SEC regarding, among other topics, RHC’s supported cryptocurrencies, custody of cryptocurrencies, and platform operations.”

Robinhood vs Regulators

This is just not the primary time that Robinhood has been dealing with scrutiny from US regulators. Back in April 2021, Robinhood acquired subpoenas from the California Attorney General’s Office whereas looking for details about its crypto arms buying and selling platform, coin listings, custody of buyer property, and rather more.

Last 12 months in August 2022, the New York Department of Financial Services (NYDFS) slapped a $30 million fantastic on Robinhood for failing to “invest the proper resources and attention to develop and maintain a culture of compliance.”

Investigative subpoenas are the first steps towards acquiring the knowledge essential to determine whether or not they wish to pursue authorized motion in opposition to the respective individual or entity.

Robinhood Markets has been lately beneath the information particularly pertaining to the chapter proceedings of crypto change FTX. Earlier this month, Robinhood approved the buyback of Sam Bankman-Fried’s 55 million shares, value 7.6% stake in Robinhood. They stated that they might be buying the shares on the market worth. However, the timeline for a similar isn’t finalized but.

Vlad Tenev, CEO and Co-Founder of Robinhood Markets, stated: “We believe it will be accretive over time and removes a distraction for shareholders”.

Bhushan is a FinTech fanatic and holds a great aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in direction of the brand new rising Blockchain Technology and Cryptocurrency markets. He is constantly in a studying course of and retains himself motivated by sharing his acquired information. In free time he reads thriller fictions novels and typically discover his culinary expertise.

The offered content material could embody the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any accountability to your private monetary loss.