Robinhood Markets Inc. (NASDAQ:HOOD) disclosed in a regulatory submitting on Monday that it has acquired a proper warning from regulators concerning potential enforcement motion associated to its cryptocurrency operations.
The warning, often called a Wells discover from the US Securities and Alternate Fee, particularly pertains to Robinhood Crypto and numerous elements of its cryptocurrency enterprise, together with listings, custody procedures, and platform operations.
In response to the submitting, the SEC’s workers knowledgeable Robinhood that they’ve made a “preliminary dedication” to advocate that the SEC pursue enforcement motion in opposition to the corporate.
Potential outcomes of this motion may embody an injunction, a cease-and-desist order, disgorgement of income, and different penalties or restrictions on enterprise actions.
Robinhood said that it had beforehand acquired a subpoena associated to the investigation and has cooperated with the SEC all through the method.
It’s necessary to notice {that a} Wells Discover supplies the corporate with a chance to reply to the SEC’s allegations, and the issuance of such a discover doesn’t essentially assure that enforcement motion will in the end be taken.
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