CA-AG v. Robinhood Crypto, LLC

Robinhood Crypto, LLC allegedly failed to allow customers to withdraw their cryptocurrency from their Robinhood accounts from 2018 to 2022, and for allegedly failing to fully disclose aspects of its trading and order handling arrangements, according to CA-AG. Robinhood allegedly sold commodities contracts in violation of the CCL by allowing customers to buy cryptocurrencies without actually delivering these assets to customers, according to CA-AG. Robinhood allegedly misled customers by advertising it would connect to multiple trading venues, to ensure customers receive the most competitive prices between the venues, which was not always true, according to CA-AG. Robinhood also allegedly represented to its customers that Robinhood itself held all its customers’ cryptocurrencies purchased through Robinhood’s platform. Despite these assurances, Robinhood allegedly did not tell customers that there were instances in which it arranged for trading venues to hold customer assets for extended periods, according to CA-AG.

Summary generated from official California Attorney General press release