The US Securities and Exchange Commission (#SEC ) has once again demonstrated its tough stance against cryptocurrencies. The institution sent a warning letter, also known as a "Wells notice", to the crypto and stock trading platform Robinhood. With the arrival of the official information, Bitcoin fell below 64 thousand dollars, while Robinhood shares fell by more than 7 percent in pre-market trading.
#Robinhood , a company that provides very low-commission stock and crypto trading services in the United States, also looks like it will face the SEC in the corridors of the court. The SEC sent Robinhood a “Wells notice” warning letter dated May 4, it said.
Bitcoin and HOOD have fallen
After this notification by the SEC, Bitcoin fell below $ 64 thousand. The largest cryptocurrency had also risen above $ 65 thousand in the morning. Robinhood shares also saw a drop of more than 7 percent in premarket trading before markets opened in the United States.
SEC staff wants a lawsuit
As it is known, the Wells notice is considered an official warning that the SEC plans to file a lawsuit against a company for violations of securities laws after conducting a formal investigation. However, it has also been seen before that the SEC did not file a lawsuit after this notification.
March June, the same notification was sent to the Coinbase exchange at the end of last year, and in June, the SEC officially sued Coinbase. Here, too, the issue was a “violation of the securities act”. The SEC also sued Binance during the same period. The information received is that the SEC staff who wrote the notification also requested that Robinhood be sued…
In a statement from Robinhood, “it was disappointing that the SEC sent such a warning about our crypto activities,” it was said.
Robinhood had “delisted" but it was not enough
The SEC also sent a notice to Robinhood following FTX's bankruptcy in the last part of 2022 due to the company's crypto listings. The fact that the SEC has sent a notification does not mean that a “wells” notice will be sent to that company in the future or that a lawsuit will be filed. It just means that the institution wants information and documents related to the relevant topic. Robinhood had removed some coins such as MATIC, SOL, ADA, FIL and SAND from the platform after the lawsuits filed against Coinbase and Binance, although not after this notification. Despite this, the company could not recover from the SEC's wells notice.