Robinhood Agrees the $3.9 Million Settlement with California

Robinhood Agrees the $3.9 Million Settlement with California

In Summary

  • Robinhood settles $3.9M fine with California DOJ.
  • Violations include illegal crypto withdrawals and misleading customers.
  • Settlement terms include customer wallet access and clearer trading policies.
  • Settlement announced on September 4, 2024.


Wednesday, September 11, 2024 – The American financial service company Robinhood Markets announced on September 4 that it had agreed with California’s Department of Justice to settle a $3.9 million fine over the illegal crypto withdrawal between 2018 and 2022.


Robinhood’s crypto trading subsidiary was barred from withdrawing customer tokens in 2022 and was subjected to the lawsuit in September 4.


Robinhood Crypto LLC had violated the state commodities laws and had misled the customers, California Attorney General Rob Bonta said.1


Nevertheless, Robinhood should allow the customers to withdraw their crypto to their wallets and clarify its trading, order handling, and custody representations, the agreement read.

Sources
  1. Cointelegraph: https://cointelegraph.com/news/robinhood-multimillion-california-settlement-crypto-withdrawal-block [↩]
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