TechFlow news — Robinhood's cryptocurrency trading subsidiary has been fined $3.9 million by California due to past practices.
The California Department of Justice found that from 2018 to 2022, Robinhood allowed customers to purchase cryptocurrencies but prohibited withdrawals, violating California's commodity laws.
Under the settlement agreement, Robinhood must allow customers to withdraw cryptocurrencies and improve disclosures regarding its custody practices.
Robinhood Markets' General Counsel stated the company remains committed to increasing access to cryptocurrency. Notably, Robinhood Crypto still faces a separate investigation by the U.S. Securities and Exchange Commission (SEC), which plans to file a lawsuit alleging violations of federal securities laws.
