Robinhood Markets’ (NASDAQ:HOOD) latest annual filing reveals that the company received an investigative subpoena from the U.S. Securities and Exchange Commission (SEC) in December 2022. The subpoena requested information about supported cryptocurrencies, custody of cryptocurrencies, and platform operations.
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Robinhood is an online discount brokerage that offers a commission-free investing and trading platform for stocks, exchange-traded funds, and cryptocurrencies.
The subpoena was received shortly after FTX Trading Ltd., a major international cryptocurrency exchange, filed for bankruptcy. The FTX debacle endangered the survival of many smaller crypto firms, and billions of dollars of customers’ money invested in digital assets. Thus, it called for heightened supervision by regulators.
The company also disclosed a subpoena from the California Attorney General’s Office. The regulator is seeking details about Robinhood Crypto, LLC’s trading platform, business and operations, custody of customer assets, customer disclosures, and coin listings.
Is Robinhood a Buy or Hold?
On TipRanks, analysts have a Hold consensus rating on HOOD based on three Buys, five Holds, and two Sells. Also, the average stock prediction of $12.94 implies nearly 33% upside potential from current levels.
