Robinhood Crypto has agreed to pay $3.9 million to settle allegations of preventing customer cryptocurrency withdrawals. The settlement marks the first public action by California Attorney General Rob Bonta against a cryptocurrency company.
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| Robinhood faces $3.9 million settlement over claims of hindering customer crypto withdrawals. The California Attorney General accuses the company of violating consumer protection laws. Symbolic image |
Washington, USA - September 05, 2024:
Robinhood Markets, the popular investment app, has agreed to pay $3.9 million to settle claims that it failed to allow customers to withdraw cryptocurrency from their accounts for several years. The settlement, announced by California Attorney General Rob Bonta, marks the first public action taken by his office against a cryptocurrency company.
According to Bonta, Robinhood violated California law by failing to deliver cryptocurrencies that customers had purchased. This led to customers being unable to withdraw their assets and forced them to sell their holdings on the platform. Additionally, the company misled customers about where their crypto assets were held and made false claims about its trading practices.
Robinhood did not admit or deny wrongdoing in the settlement. As part of the agreement, the company will be required to allow customers to withdraw crypto assets to their own wallets and will be held accountable for its representations regarding its trading and order handling practices.
Lucas Moskowitz, Robinhood's general counsel, expressed satisfaction with the settlement and emphasized the company's commitment to making cryptocurrency more accessible and affordable for all.
Attorney General Bonta emphasized the importance of holding cryptocurrency companies accountable for their actions and ensuring that they comply with consumer and investor protection laws. The settlement serves as a warning to other companies in the industry that they must adhere to these regulations.
This development has significant implications for the cryptocurrency industry, as it highlights the need for increased oversight and transparency. As the industry continues to grow, it is crucial that companies operate ethically and responsibly to protect the interests of their customers.