Robinhood Markets Inc. (NASDAQ:HOOD) disclosed in a regulatory submitting on Monday that it has obtained a proper warning from regulators concerning potential enforcement motion associated to its cryptocurrency operations.
The warning, generally known as a Wells discover from the US Securities and Change Fee, particularly pertains to Robinhood Crypto and varied elements of its cryptocurrency enterprise, together with listings, custody procedures, and platform operations.
In keeping with the submitting, the SEC’s workers knowledgeable Robinhood that they’ve made a “preliminary willpower” to suggest that the SEC pursue enforcement motion in opposition to the corporate.
Potential outcomes of this motion might embody an injunction, a cease-and-desist order, disgorgement of income, and different penalties or restrictions on enterprise actions.
Robinhood acknowledged that it had beforehand obtained 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 answer 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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