California Attorney General Rob Bonta announced a $3.9 million settlement with Robinhood Crypto LLC over violations of the state's commodities law that prevented customers from withdrawing cryptocurrency from their accounts from 2018 to 2022. As part of the settlement, Robinhood will allow cryptocurrency withdrawals to personal wallets and update its trading and custody practices.
The investigation found that #Robinhood violated laws by selling commodity contracts without actually delivering assets and misleading customers about its trading practices. The company also failed to disclose information about the long-term storage of customer assets.
The attorney general stressed the need to uphold consumer protection laws. Robinhood's top lawyer expressed satisfaction with the settlement, noting that it addresses the company's past practices. Robinhood also faces an SEC probe into possible violations of federal securities laws.
Subscribe! @Sasha why NOT
