Shortly after cryptocurrency exchange FTX filed for Chapter 11 bankruptcy last November, Robinhood Markets (HOOD) received a subpoena from the U.S. Securities and Exchange Commission (SEC) regarding its cryptocurrency operations, the platform said in its latest 10-K filing. disclosure.
Among other things, the subpoena relates to Robinhood’s “cryptocurrency listings, cryptocurrency custody, and platform operations.” Robinhood also received a similar subpoena request from the California Attorney General’s office regarding its trading platform, custody of client assets, client disclosures, and token listings.
The company said it was cooperating with the California investigation. Robinhood noted in the filing that if the SEC or a court determine that any of the cryptocurrencies it supports are securities, Robinhood could be forced to stop trading those cryptocurrencies.
Such conduct may result in regulatory penalties, customer liability, and judicial or administrative sanctions. Shares of Robinhood fell 0.5% in after-hours trading on Monday after the filing. The SEC did not immediately respond to a request for comment.
