Robinhood Settles with California Regulators Over Restricting User Withdrawal of Cryptocurrency
Publication Time:2024-09-05 10:11:07
Recently, the American cryptocurrency trading platform Robinhood announced that it had settled with California's regulatory bodies, agreeing to pay $3.9 million to address concerns over its past practice of prohibiting users from withdrawing the digital currencies they had bought. Reports suggest that although Robinhood lifted this restrictive policy in 2022, its former actions still drew attention from the California government. The California Attorney General initiated an investigation, focusing on how Robinhood handled its popular trading app's crypto business from 2018 to 2022. The investigation uncovered that Robinhood allowed customers to purchase digital currencies but restricted their personal custody, which violated California's commodities law. As part of the agreed settlement, Robinhood is committed to continuing allowing users to withdraw their crypto assets from its app and updating its disclosures regarding its custodial practices.
Cryptocurrency
Robinhood
settlement
user withdrawal
California regulation