Robinhood Markets receives SEC notice for alleged securities violations at crypto unit

Robinhood Markets Inc. has received a notice from the Securities and Exchange Commission about alleged securities violations at its crypto division.

The company said in a regulatory filing that it received investigative subpoenas from the SEC about issues including cryptocurrency listings, custody of cryptocurrencies, and platform operations.

Robinhood Crypto has cooperated with the investigation, the company said.

Last week the crypto division received a Wells notice from SEC staff advising the unit that a preliminary determination was made to recommend that the SEC file an enforcement action against Robinhood Crypto for alleged securities violations.

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