Home Wealth Management Robinhood Says It’s Dealing with Investigation From New York State

Robinhood Says It’s Dealing with Investigation From New York State

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Robinhood Says It’s Dealing with Investigation From New York State

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(Bloomberg) — Robinhood Markets Inc. is cooperating with an investigation from New York’s high legislation enforcement workplace into “brokerage execution high quality,” the retail buying and selling agency stated in a regulatory submitting.

Robinhood declined to remark, and the New York Legal professional Basic’s workplace didn’t reply to a request for remark.

The net brokerage has confronted heightened regulatory scrutiny through the previous a number of years. In March 2020, a number of service outages prevented its clients from buying and selling. Then, in early 2021, the so-called meme-stock frenzy spurred the brokerage to limit buying and selling. 

US monetary watchdogs have additionally taken a extra aggressive strategy to policing cryptocurrency after the collapse of FTX Buying and selling Ltd, as soon as one of many world’s largest crypto exchanges. 

Robinhood stated within the Thursday submitting that it’s paid about $175 million previously few years to resolve actions introduced by the Securities and Trade Fee, the Monetary Business Regulatory Authority and a number of other state regulators.

“The securities business is very regulated and plenty of features of our enterprise contain substantial threat of legal responsibility,” Robinhood stated within the submitting, including that these dangers embody class-action lawsuits and regulatory actions.

In Might, Robinhood stated the SEC and FINRA had been investigating workers’ use of “off-channel communications,” and in February the brokerage stated it was subpoenaed by the SEC and California Legal professional Basic’s Workplace for data tied to its cryptocurrency enterprise.

The New York State Legal professional Basic’s investigation was reported earlier by the Wall Avenue Journal and Law360.

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