Robinhood said its subsidiary Robinhood Crypto, LLC (RHC) received a Wells Notice from the SEC Staff on May 4, 2024. The Staff told RHC that it made a "preliminary determination" to recommend that the SEC file an enforcement action against it.

1. 01

   Robinhood said its subsidiary Robinhood Crypto, LLC (RHC) received a Wells Notice from the SEC Staff on May 4, 2024. The Staff told RHC that it made a "preliminary determination" to recommend that the SEC file an enforcement action against it.

2. 02

   The company said the Staff told RHC it will recommend that the SEC bring an enforcement action alleging violations of Securities Exchange Act of 1934 Sections 15(a) and 17A.

3. 03

   The company said RHC received investigative subpoenas from the SEC covering, as previously disclosed, its cryptocurrency listings, custody of cryptocurrencies and platform operations, and that RHC has cooperated with the investigation.

4. 04

   The company said the potential action may involve a civil injunctive action, a public administrative proceeding and/or a cease-and-desist proceeding. It said the remedies sought may include an injunction, a cease-and-desist order, disgorgement, pre-judgment interest, civil money penalties, and censure, revocation and limitations on activities.

Analysis scope · Filing bodyWe analyzed the filing body and confirmed exhibits. This is not a review of other exhibits, investor presentations or the full earnings call.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.