Robinhood to pay $3.9 million to settle California crypto investigation
Summary
Robinhood's crypto division will pay a $3.9 million fine to settle a California investigation into its practices from 2018 to 2022. The company prevented users from withdrawing digital assets and failed to fully disclose trading and order-handling processes. Robinhood misled customers about connecting to multiple trading venues for the best prices and sometimes held customer assets without informing them. As part of the settlement, users must be allowed to withdraw assets, with disclosures about potential extended holding periods for security reasons. Robinhood faces a separate SEC investigation but plans to contest the claims.
