According to Foresight News, Robinhood Crypto, LLC (RHC) has received a Wells Notice from the staff of the U.S. Securities and Exchange Commission (SEC) regarding topics such as RHC’s cryptocurrency listing, cryptocurrency custody, and platform operations (RHC Activities).
The SEC staff has informed RHC that it has made a “preliminary determination” recommending that the SEC charge RHC with violations of Sections 15(a) and 17A of the Securities Exchange Act of 1934, as amended. Potential actions could involve civil injunctive relief, public administrative proceedings, and/or cease and desist proceedings, and could seek remedies including injunctions, cease and desist orders, disgorgement of ill-gotten gains, prejudgment interest, civil monetary penalties, censures, revocations, and restraints.
