Robinhood Markets has revealed that it had received an investigative subpoena from the United States Securities and Exchange Commission (SEC) into the crypto trading, custody and platform operations of its digital asset business.
In a 10-K filing, the broker said she received the investigation citation in December, shortly after cryptocurrency exchange FTX filed for bankruptcy in November, and after "several other major cryptocurrency trading venues and lending platforms in early 2022," including Three Arrows Capital, Voyager Digital Holdings, and Celsius Network.
The investigative subpoena was related to their cryptocurrency listings and escrow services, which they said sprang up in response to last year's crypto bankruptcies:
โIn December 2022, following the 2022 crypto bankruptcies, we received an investigative subpoena from the SEC regarding, among other issues, RHC-backed cryptocurrencies, cryptocurrency custody, and platform operations.โ
Robinhood said it had also received subpoenas from the California Attorney General's Office seeking information about the trading platform, the business and operations of its crypto arm, custody of client assets, and coin listings.
Robinhood's crypto division was hit with a $30 million fine by the Financial Services District of New York (NYDFS) on August 2 for failing to "invest adequate resources and attention to develop and maintain a culture of compliance."
The brokerage was also vetted by the Massachusetts Securities Division (MSD) in August 2021 for supposedly aimed at inexperienced investors.
Investigative subpoenas are issued by a court at the request of another person or entity in order to obtain the information necessary to decide whether to take legal action against the person or entity subpoenaed.
Cointelegraph reached out to Robinhood, but the firm declined to comment on the matter.
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