Amid continuous crackdowns and enforcement actions on the crypto platforms, the leading financial service company Robinhood said that the Security and Exchange Commission (SEC) had reached its doors to investigate its crypto business.
The filing from Robinhood revealed that the firm received an investigative subpoena last year in December, right after the leading crypto exchange FTX collapsed and was declared bankrupt. The subpoena was related to Robinhood’s crypto listings, custody, and other topics.
Along with exchange-traded funds (ETFs) and options trading, Robinhood offers trading services for prominent cryptocurrencies Bitcoin, Ethereum, Dogecoin, and Shiba Inu tokens. The firm gained immersive benefits from crypto trading offerings, though ongoing turmoil in the crypto space forced so many investors to lose their interest.
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Furthermore, the devastation on major crypto firms such as FTX, Three Arrow Capital, Voyager Digital, and so on also draw the attention of regulatory authorities.
However, regulatory authorities worldwide reap the advantage of the devastation in crypto and see it as an opportunity to curb speculation. In the last few months, authorities investigated the business of several crypto firms.
