SEC Sent Subpoena to Robinhood Over Crypto Business

The US Securities and Exchange Commission sent an investigation subpoena to Robinhood Markets (HOOD) over its crypto operations shortly after the FTX crypto exchange filed for bankruptcy protection in November, according to the popular trading platform’s most recent 10-K filing.

Robinhood shares fell 0.5% in after-hours trading Monday following the filing.

The subpoena sought information about Robinhood’s “cryptocurrency listings, cryptocurrency custody, and platform operations,” among other things.

The California Attorney General’s office also sent subpoenas to Robinhood about its trading platform, custody of user funds, customer disclosures, and coin listing. The corporation stated that it is working with the inquiry in California.

In its petition, Robinhood stated that if the SEC or a court rules that any cryptocurrencies it supports are securities, Robinhood may be obliged to discontinue trading such cryptocurrencies. Such behavior may result in regulatory fines, consumer liability, and legal or administrative consequences.