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Robinhood Trading Platform to Pay $3.9M for Crypto-Withdrawal Failure
HOODRobinhood(HOOD) ZACKS·2024-09-05 16:20

Group 1: Robinhood Markets, Inc. - Robinhood's cryptocurrency platform will pay 3.9millioninasettlementwiththeCaliforniaDepartmentofJusticeoverissuesrelatedtocryptowithdrawals[1]−TheCaliforniaAttorneyGeneralstatedthatRobinhoodviolatedstatelawbyfailingtodeliverpurchasedcryptocurrencies,preventingcustomersfromwithdrawingtheirassets[2]−Aspartofthesettlement,Robinhoodisrequiredtoallowcustomerstowithdrawcryptoassetstotheirownwalletsandtohonoritstradingandorderhandlingpractices[3]−Overthepastsixmonths,Robinhoodshareshaveincreasedby16.53.9 million in a settlement with the California Department of Justice over issues related to crypto withdrawals [1] - The California Attorney General stated that Robinhood violated state law by failing to deliver purchased cryptocurrencies, preventing customers from withdrawing their assets [2] - As part of the settlement, Robinhood is required to allow customers to withdraw crypto assets to their own wallets and to honor its trading and order handling practices [3] - Over the past six months, Robinhood shares have increased by 16.5%, outperforming the industry growth of 10.3% [3] Group 2: Financial Misconduct in the Industry - The Commodity Futures Trading Commission (CFTC) ordered The Bank of New York Mellon Corporation to pay a civil penalty of 5 million for failing to report millions of swap transactions [5] - BNY Mellon also failed to supervise its swap dealer business as required by regulations, and agreed to retain an independent compliance consultant [6] - The CFTC has requested non-disclosure agreements from banks like JPMorgan and Citigroup regarding their swaps and clearing businesses [7]