Robinhood LLC settles with the State of California for $3.9 million.
The settlement resolves allegations of freezing crypto withdrawals from 2018 to 2022.
The firm will allow customers to withdraw funds to their personal wallets.
Robinhood Markets’ crypto arm settled with the State of California for $3.9 million, resolving allegations that the platform halted crypto withdrawals for almost four years. This marks the California Department of Justice’s first public action against a crypto firm, with California Attorney General Rob Bonta alleging Robinhood Crypto LLC violated commodities laws.
The Attorney General asserted that the platform violated the commodities laws by not providing customers with the cryptocurrencies they bought. The firm forced its clients to sell their assets and exit the platform, leaving them unable to withdraw the funds from 2018 to 2022.
Bonta accused Robinhood Crypto LLC of allegedly deceiving its customers by claiming to hold their cryptocurrencies, though in some cases, other platforms held the assets. Additionally, the Attorney General criticized the company for deceptive advertising, exposing its tactics of misleading custo…
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