Summary by Moomoo AI
Robinhood Markets, Inc., a financial services company, has disclosed that its subsidiary, Robinhood Crypto, LLC (RHC), has received a Wells Notice from the Securities and Exchange Commission (SEC) on May 4, 2024. The notice indicates that the SEC staff has made a preliminary determination to recommend enforcement action against RHC for possible violations of the Securities Exchange Act of 1934. The investigation by the SEC involves RHC's cryptocurrency listings, custody of cryptocurrencies, and platform operations. Potential enforcement could result in a range of penalties, including civil action, administrative proceedings, and cease-and-desist orders, along with disgorgement, interest, and monetary penalties. Robinhood has been cooperating with the SEC's investigation and uses its Investor Relations website and Newsroom to disclose material information to the public, in compliance with the SEC's Regulation Fair Disclosure.