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Robinhood Settles $3.9M With California Over Crypto Withdrawal Ban

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By on September 5, 2024 Altcoin, Bitcoin, Regulations, Trading, Web3
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The post Robinhood Settles $3.9M With California Over Crypto Withdrawal Ban appeared first on Coinpedia Fintech News

Robinhood has ended its 4-year rug pull and agreed to a $3.9 million settlement with California over its past ban on crypto withdrawals. The state’s investigation found that Robinhood Crypto LLC violated commodities laws between 2018 and 2022 by restricting customers from withdrawing their cryptocurrencies. Although the policy ended in 2022, the settlement requires Robinhood to allow withdrawals and update custody disclosures. The California AG noted that Robinhood misled users about asset custody, prompting some to sell to exit the platform. Robinhood’s general counsel, Lucas Moskowitz, said the settlement addresses past issues, but the company still faces potential SEC legal action.

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