Robinhood Markets Inc. disclosed in a filing late Monday that it received a subpoena from securities regulators regarding its cryptocurrency listings, custody of cryptocurrencies and platform operations, among other topics.
The US Securities and Exchange Commission’s subpoena came in December, shortly after FTX Trading Ltd. and other crypto companies filed for bankruptcy, Robinhood HOOD said in its annual report.
If…
Robinhood Markets Inc. disclosed in a filing late Monday that it received a subpoena from securities regulators regarding its cryptocurrency listings, custody of cryptocurrencies and platform operations, among other topics.
The US Securities and Exchange Commission’s subpoena came in December, shortly after FTX Trading Ltd. and other crypto companies filed for bankruptcy, Robinhood
HOOD
said in its annual report.
If the SEC or a court determines that any cryptocurrencies supported by Robinhood’s platform are securities, it could prevent the company “from continuing to facilitate trading in those cryptocurrencies (including ceasing to support such cryptocurrencies on our platform),” the company said in the archive. .
Read: Robinhood accidentally short sold a meme stock and lost $57 million
Earlier this month, Robinhood’s board approved the buyback of more than 50 million shares purchased by Sam Bankman-Fried, founder of failed cryptocurrency exchange FTX Ltd., that had been seized by the Justice Department.
After FTX filed for bankruptcy in November and following the bankruptcies of several other crypto trading companies, including Three Arrows Capital Ltd., Voyager Digital Holdings, Inc. and Celsius Network LLC, Robinhood received an investigative subpoena from the SEC regarding, among other things, Robinhood Crypto LLC’s “cryptocurrency listings, custody of cryptocurrencies and platform operations,” the company said in the filing.
Robinhood said it ended 2022 with $6.3 billion in cash and cash equivalents and $2.91 billion available under credit facilities. The company reported a net loss of $1.17 per share on revenue of $1.36 billion, compared with a net loss of $7.49 per share on revenue of $1.82 billion.
Shares of Robinhood fell 0.6% in the extended session Monday after the regular trading day ended up 1.4%.
Robinhood shares have fallen 16.3% over the past 12 months, matching the 16.3% decline of the tech-heavy Nasdaq Composite Index
COMP
,
while the S&P 500
SPX
has decreased by 9.2%.
