Robotoid Crypto LLC paid California’s Department of Justice $3.9 million to settle charges that it limited crypto transfers from 2018 to 2022. The site was accused by the authorities of breaking state laws and misleading customers about their assets. As part of the deal, Robinhood has to let people make transfers and be more open. Even though the lawsuit was settled, Robinhood’s stock didn’t go down much, and the company is still being closely watched by regulators.
This is because California’s Department of Justice said that Robinhood Crypto LLC stopped users from withdrawing coins from 2018 to 2022. The company agreed to a $3.9 million payment. Rob Bonta, the attorney general of California, led the charge. He said that the company broke state laws by making users sell their crypto holdings to Robinhood instead of letting them take their money.
The settlement also dealt with claims that Robinhood lied to customers about how to hold their cryptocurrency and get good selling prices. Robinhood didn’t say it did or didn’t do anything wrong in this case, but it did agree to let people take crypto and be more open about how it stores assets and trades.
Lucas Moskowitz, Robinhood’s general counsel, said he was glad the problem was solved and reaffirmed the company’s dedication to making cryptocurrency trade easy and cheap. Even though there was a legal deal, Robinhood’s price only went down a little and back up a little after the market closed.
