American commission-free broker, Robinhood Markets Inc (Nasdaq: HOOD), revealed in a Monday filing that it received an investigative subpoena from the US securities regulator over inquiries around cryptocurrency listings.
The subpoena was issued last December, and its primary purpose was to know the operations of Robinhood’s crypto arm. Apart from crypto listing details, the subpoena also sought information about the custody of cryptocurrencies and platform operations.
“We received an investigative subpoena from the SEC regarding, among other topics, RHC’s cryptocurrency listings, custody of cryptocurrencies, and platform operations,” the 10-K filing of the broker stated.
A court issues an investigative subpoena at a request of another person or an organization. The purpose of such a subpoena is to extract information and evaluate the viability of a possible legal action against the party in question.
An Aftermath of Crypto Industry Collapses
The subpoena against Robinhood came in the aftermath of the FTX collapse. The misdeeds of Sam Bankman-Fried and the exposure of the industry to his companies resulted in a series of bankruptcies. The FTX fiasco came when the crypto industry was still reeling from the impacts of the collapse of Terra-Luna and Three Arrows Capital earlier last year.
Robinhood moved into cryptocurrency trading in 2018 when retail demand for digital assets soared…
