Following the FTX cryptocurrency exchange’s filing for bankruptcy protection in November, Robinhood Markets (HOOD) disclosed in its most recent 10-K filing that it had gotten an investigative subpoena from the U.S. Securities and Exchange Commission regarding its cryptocurrency operations.
Robinhood’s “cryptocurrency listings, custody of cryptocurrencies, and platform operations” were among the topics covered by the request.
The California Attorney General’s office also issued subpoenas to Robinhood with identical requests for information about its trading platform, customer disclosures, customer asset custody, and coin listing. The business declared that it is aiding the inquiry being conducted by California.
The SEC or a judge could order Robinhood to stop trading any cryptocurrencies it supports if they are found to be securities, the company warned in its filing. Such an action might bring about regulatory fines, client liabilities, and court or administrative penalties.
Following the report on Monday, shares of Robinhood fell by 0.5% in after-hours trading.