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    The Trading Platform Robinhood Received SEC Subpoena

    Robinhood, a popular trading app provider, was subpoenaed by US securities regulators, according to a filing submitted on Feb.27.

    Accordingly, Robinhood said that it has received subpoenas from the U.S. Securities and Exchange Commission (SEC) regarding various matters such as cryptocurrency listings, crypto custody, and operations on the platform.

    The subpoena was sent in December 2022 following the collapse of FTX in November as well as the collapses of other companies over the summer. Robinhood could face sanctions if the SEC or any court could determine that the company is not complying with securities regulations. Moreover, if the cryptocurrencies listed on its platform are identified as securities, support for trading those assets will be impeded. Robinhood added that it could be forced to pay regulatory fines and compensate users.

    Robinhood made these claims in its 10-K filing — a required annual report for publicly- and privately-traded companies. While the report must be submitted by the end of December 2022, it has not been filed or made public until today.

    Currently, Robinhood supports 18 cryptocurrencies on its trading platform, including Bitcoin, Ethereum, and Dogecoin. To get started with digital assets, investors can invest as little as $1. 

    When a case is under investigation, a subpoena orders the subject to show up in court to testify or provide evidence. According to Robinhood, similar subpoena demands addressing its trading platform, asset custody for customers, client disclosures, and currency listing were made by the California Attorney General’s office.

    Despite the apparent intervention from the SEC, there is no indication that the regulator plans to take immediate action against Robinhood. The company said it cooperated with all investigations in the filing.

    Robinhood’s spokesperson said they have nothing more to say other than what is in the filing. Following the filing on Monday, shares of Robinhood fell by 0.5% in after-hours trade. 

    The SEC did not immediately respond to a request for comment.

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