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Robinhood’s crypto division to pay $3.9M settlement over halt on withdrawals
The post Robinhood’s crypto division to pay $3.9M settlement over halt on withdrawals appeared on BitcoinEthereumNews.com. Settlement related to charges associated with violations of commodities laws Robinhood’s crypto arm is just the latest crypto-entity to fall victim to regulatory enforcement Robinhood Markets’ crypto division, Robinhood Crypto LLC, is in the news today after it settled with California’s Justice Department for $3.9 million. This settlement was over claims it halted crypto withdrawals between 2018 and 2022. The settlement, reached without the company admitting or denying wrongdoing, came after Attorney General Rob Bonta accused the company of breaking commodities laws. Robinhood must now ensure it does not impede crypto withdrawals and must maintain transparency regarding its custody practices. Details of these charges When it filed these charges, the state’s Justice Department claimed that Robinhood Crypto LLC failed to delivery crypto assets to customers who had bought them. Similarly, Bonta’s legal team accused the platform of allowing customers to sell their cryptos to Robinhood in an attempt to get their funds released. Attorney General Bonta emphasized that Robinhood’s alleged misconduct violated California’s consumer protection laws, putting many of the state’s investors at risk. He added, “Our investigation and settlement with Robinhood should send a strong message: Whether you’re a brick-and-mortar store or a cryptocurrency company, you must adhere to California’s consumer and investor protection laws. I am dedicated to using all the tools available to my office to protect California consumers in the face of advancing technology in the marketplace.” For its part, a representative from Robinhood claimed that it is glad to put the matter behind them. In fact, according to the firm’s general counsel, the settlement has also resolved the AG’s concerns about the firm’s “historical practices.” Not just Robinhood This settlement highlights the increasing regulatory pressure on crypto companies in the U.S. to comply with legal standards and safeguard consumer interests. Notably, similar regulatory actions have recently targeted…
The post Robinhood’s crypto division to pay $3.9M settlement over halt on withdrawals appeared on BitcoinEthereumNews.com.
Settlement related to charges associated with violations of commodities laws Robinhood’s crypto arm is just the latest crypto-entity to fall victim to regulatory enforcement Robinhood Markets’ crypto division, Robinhood Crypto LLC, is in the news today after it settled with California’s Justice Department for $3.9 million. This settlement was over claims it halted crypto withdrawals between 2018 and 2022. The settlement, reached without the company admitting or denying wrongdoing, came after Attorney General Rob Bonta accused the company of breaking commodities laws. Robinhood must now ensure it does not impede crypto withdrawals and must maintain transparency regarding its custody practices. Details of these charges When it filed these charges, the state’s Justice Department claimed that Robinhood Crypto LLC failed to delivery crypto assets to customers who had bought them. Similarly, Bonta’s legal team accused the platform of allowing customers to sell their cryptos to Robinhood in an attempt to get their funds released. Attorney General Bonta emphasized that Robinhood’s alleged misconduct violated California’s consumer protection laws, putting many of the state’s investors at risk. He added, “Our investigation and settlement with Robinhood should send a strong message: Whether you’re a brick-and-mortar store or a cryptocurrency company, you must adhere to California’s consumer and investor protection laws. I am dedicated to using all the tools available to my office to protect California consumers in the face of advancing technology in the marketplace.” For its part, a representative from Robinhood claimed that it is glad to put the matter behind them. In fact, according to the firm’s general counsel, the settlement has also resolved the AG’s concerns about the firm’s “historical practices.” Not just Robinhood This settlement highlights the increasing regulatory pressure on crypto companies in the U.S. to comply with legal standards and safeguard consumer interests. Notably, similar regulatory actions have recently targeted…
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