Robinhood Markets Inc. (NASDAQ:HOOD) disclosed in a regulatory submitting on Monday that it has obtained a proper warning from regulators relating to potential enforcement motion associated to its cryptocurrency operations.
The warning, often known as a Wells discover from the US Securities and Trade Fee, particularly pertains to Robinhood Crypto and numerous facets of its cryptocurrency enterprise, together with listings, custody procedures, and platform operations.
In response to the submitting, the SEC’s employees knowledgeable Robinhood that they’ve made a “preliminary willpower” to advocate that the SEC pursue enforcement motion towards the corporate.
Potential outcomes of this motion may embrace an injunction, a cease-and-desist order, disgorgement of income, and different penalties or restrictions on enterprise actions.
Robinhood said 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 possibility 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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