Robinhood's crypto arm receives SEC warning over alleged securities violations
by The Verge
The Verge— Robinhood’s cryptocurrency division could soon be in trouble with the Securities and Exchange Commission. In an 8-K filing submitted on Saturday, Robinhood revealed that it received a Wells notice from the SEC’s staff recommending the agency take action against the trading platform for alleged securities violations. Robinhood says it received the Wells notice after cooperating with the SEC’s requests for investigative subpoenas about its crypto listings, custody of cryptocurrencies, and the...
Tech Times—Robinhood Crypto May Face SEC Securities Violation Suit, After Wells Notice. Robinhood believes that a lawsuit is coming from the SEC for securities violation after the given notice.
Marketwatch—SEC’s crypto ‘carpet-bombing campaign’ draws flak after Robinhood’s Wells notice. Some crypto industry observers hope the SEC may soon be overwhelmed by the number of cases it is currently litigating in the crypto space.
Quartz—The SEC is cracking down on Robinhood's crypto division for selling unregistered securities. The crypto arm of trading platform Robinhood has received a Wells notice from the Securities and Exchange Commission (SEC) over allegedly violating securities laws. A Wells notice is a formal notification from the financial watchdog that it intends to take enforcement action against the trading platform, but it does not necessarily mean the SEC will sue Robinhood. The SEC will give the company a chance to respond and explain why it believes a civil suit is inappropriate. Despite the legal...