Feb 27 (Reuters) – Robinhood Markets Inc (HOOD.O) said in a filing on Monday it had received an investigative subpoena in December from the U.S. Securities and Exchange Commission related to listings of cryptocurrencies.
The collapse of Sam Bankman-Fried’s FTX was the biggest in a string of major crypto-related failures in 2022, which sparked a cryptocurrency rout and left creditors facing losses of billions of dollars.
FTX filed for bankruptcy in November, which spurred an intervention from regulators around the world and dealt a blow to investor sentiment in the sector.
The SEC has maintained that pre-existing securities laws also apply to digital assets and that many crypto tokens meet the definition of a security, which the crypto industry has previously criticized.
Robinhood said the subpoena it received from the SEC was regarding the supported currencies at Robinhood Crypto LLC, which is a wholly-owned subsidiary of the brokerage, as well as its custody of cryptocurrencies and other platform operations.
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Earlier this month, Robinhood also said it planned to repurchase its shares from Sam Bankman-Fried’s Emergent Fidelity Technologies as U.S. prosecutors were in the process of seizing its shares tied to the former FTX CEO.
Reporting by Anirban Chakroborti in Bengaluru; Editing by Krishna Chandra Eluri
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