Robinhood says SEC issued subpoena associated to crypto operations

Feb 27 (Reuters) – Robinhood Markets Inc (HOOD.O) stated in a submitting on Monday it had obtained an investigative subpoena in December from the U.S. Securities and Change Fee associated to listings of cryptocurrencies.

The collapse of Sam Bankman-Fried’s FTX was the largest in a string of main crypto-related failures in 2022, which sparked a cryptocurrency rout and left collectors dealing with losses of billions of {dollars}.

FTX filed for chapter in November, which spurred an intervention from regulators all over the world and dealt a blow to investor sentiment within the sector.

The SEC has maintained that pre-existing securities legal guidelines additionally apply to digital belongings and that many crypto tokens meet the definition of a safety, which the crypto business has beforehand criticized.

Robinhood stated the subpoena it obtained from the SEC was concerning the supported currencies at Robinhood Crypto LLC, which is a wholly-owned subsidiary of the brokerage, in addition to its custody of cryptocurrencies and different platform operations.

Earlier this month, Robinhood additionally stated it deliberate to repurchase its shares from Sam Bankman-Fried’s Emergent Constancy Applied sciences as U.S. prosecutors have been within the means of seizing its shares tied to the previous FTX CEO.

Reporting by Anirban Chakroborti in Bengaluru; Modifying by Krishna Chandra Eluri

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