Robinhood Markets Inc (HOOD.O.) stated in a Monday filing that it received an investigative subpoena from the U.S Securities and Exchange Commission in December related to listing of cryptocurrencies.
The collapse at Sam Bankman-Fried’s FTX in 2022 was the largest in a series of major crypto-related failures. This sparked a cryptocurrency rout that left creditors with losses in excess of $1 trillion.
FTX filed bankruptcy in November. This prompted an intervention by regulators around the globe and caused a major blow to investor sentiment.
The SEC maintained the fact that all pre-existing securities laws apply to digital assets, and that many crypto tokens are considered security. This has been previously criticised by the crypto industry.
Robinhood stated that the SEC subpoena was for Robinhood Crypto LLC supported currencies. This brokerage subsidiary is also responsible for its custody of cryptocurrencies.
Robinhood also stated earlier this month that it would repurchase its shares from Sam Bankman Fried’s Emergent Fidelity Technologies. This was because U.S. prosecutors were currently trying to seize its shares linked to the former FTX chief.