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Robinhood Settles $3.9M Lawsuit Over Blocked Crypto Withdrawals, Agrees to Major Changes

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.


The Robinhood logo, representing the company’s settlement over blocked cryptocurrency withdrawals.
Robinhood settles $3.9 million lawsuit over blocked crypto withdrawals and agrees to implement key changes.

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.


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