Robinhood Crypto settles $3.9M with California over blocked crypto withdrawals from 2018-2022. Platform to allow withdrawals and clarify trading practices.
Robinhood Crypto LLC has reached a $3.9 million settlement with the California Justice Department over allegations that it blocked users from withdrawing their cryptocurrency between 2018 and 2022. This marks the first public action taken against a crypto company by the state, signaling a tough stance on consumer protection in the crypto space.
Key Points:
Robinhood was accused of blocking crypto withdrawals and misleading customers between 2018 and 2022.
The company settled for $3.9 million without admitting guilt but agreed to make key operational changes.
The platform must now allow users to withdraw crypto to external wallets and clarify its practices regarding order handling and custody.
Robinhood shares saw minor fluctuations following the settlement but remain up 54.5% this year.
With this settlement, Robinhood Crypto takes a step towards restoring consumer confidence by addressing past issues and improving its transparency. The resolution serves as a wake-up call for crypto companies to adhere strictly to consumer protection laws, ensuring a smoother and more reliable experience for users in the future.
Source: Cointelegraph
Comentarios