The SEC has charged Robinhood because of its crypto operations

The SEC has charged Robinhood because of its crypto operations
Robinhood Markets announced that it received an investigation in December from the US stock exchange supervisory authority SEC. The step of the agency is part of a great approach to the digital asset industry after the dramatic collapse of Sam Bankman-Fried's crypto empire last year. The crypto-mogul, who had fallen unexpectedly, was recently hit by new criminal charges in connection with political donations that he had made during the leadership of FTX.
According to his latest 10 K filing, the summons concerns the supported assets from his subsidiary Robinhood Crypto LLC as well as the custody of cryptocurrencies and other platform operations.
- The SEC previously claimed that the digital asset industry would not be spared the existing securities laws, and signaled that several tokens fulfill the definition of a securities, an attitude that vehemently rejected the crypto industry.
- In addition, this is not the first time that Robinhood was charged by a country supervisory authority.
- A similar prime request was delivered by the California General Prosecutor's Office in relation to its trading platform, the custody of customer assets, customer -open positions, etc. Coin list. The platform claimed to work with its investigation.
- The crypto revenues of Robinhood shrank as a result of the turbulent market conditions in 2022, which pulled the entire trade activities down.
- The New York State Department of Financial Services (NYDFS) also made a penalty of $ 30 million for allegations last summer that it had violated money laundering and cyber security procedures.
- The investment platform based in California started positively in 2023. His crypto trade volume reached $ 3.7 billion in January and increased by 95 % compared to the $ 1.9 billion.
.