The SEC issued a subpoena to Robinhood over its crypto operations

Robinhood Markets said it received a subpoena from the U.S. Securities and Exchange Commission (SEC) in December. The agency’s decision is part of a major crackdown on the digital asset industry following the dramatic collapse of Sam Bankman-Fried’s crypto empire last year. The disgraced crypto mogul was recently hit with new criminal charges related to political donations he made while running FTX.

According to his latest 10-K depositthe subpoena relates to assets supported by its subsidiary Robinhood Crypto LLC, as well as its custody of cryptocurrencies and other platform operations.

• The SEC has previously argued that the digital asset industry would not be immune to pre-existing securities laws, noting that several tokens meet the definition of a security, a position the crypto industry s is vehemently opposed.
• Additionally, this isn’t the first time Robinhood has been subpoenaed by a regulatory watchdog in the country.
• A similar subpoena request was served by the California Attorney General’s office regarding its trading platform, custody of client assets, client disclosures as well as exhibit listing. The platform claimed to have cooperated with their investigation.
• Robinhood’s crypto revenue declined due to turbulent market conditions in 2022 that led to a decline in its overall business operations.
• The New York State Department of Financial Services (NYDFS) also imposed a $30 million fine last summer over allegations that it violated anti-money laundering and cybersecurity procedures. .
• The California-based investment platform has started 2023 on a high note, however. Its crypto trading volume in January reached $3.7 billion, up 95% from the $1.9 billion recorded in December.