Robinhood (NASDAQ🙂 Markets, Inc. (NASDAQ:HOOD), the parent company of Robinhood Crypto, LLC (RHC), is facing potential enforcement action by the Securities and Exchange Commission (SEC). On Thursday, RHC received a Wells Notice indicating that the SEC staff has made a preliminary determination to recommend an enforcement action against the company. The notice is related to RHC’s cryptocurrency listings, custody of cryptocurrencies, and platform operations.
The SEC’s enforcement action could include a civil injunctive action, public administrative proceeding, and/or a cease-and-desist proceeding. Remedies sought may encompass an injunction, a cease-and-desist order, disgorgement, pre-judgment interest, civil money penalties, and censure, revocation, or limitations on activities.
The potential violations pertain to Sections 15(a) and 17A of the Securities Exchange Act of 1934. Robinhood has disclosed that it has cooperated with the SEC investigation leading up to the receipt…
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