Robinhood's Former Ban on Crypto Withdrawals Draws $3.9M Settlement in California
The popular trading app's sunsetted ban on customer crypto withdrawals caught the ire of California's attorney general.
Robinhood's crypto-trading subsidiary used to prevent customers from withdrawing the tokens they bought. Though Robinhood Crypto LLC abandoned that policy in 2022, on Wednesday its past practices earned a $3.9 million slap on the wrist from the state of California.
The California Department of Justice settled its investigation into what Robinhood's chief lawyer called "historical practices" in the popular trading app's crypto business from 2018 through 2022
