BIG CASH – Robinhood Agrees to $3.9M Settlement with California on Crypto Disputes
September 4 (Reuters) – Robinhood Markets’ cryptocurrency platform, Robinhood Crypto, will pay $3.9 million to settle claims that it failed to allow customers to withdraw their cryptocurrency from accounts between 2018 and 2022. The settlement, announced by California Attorney General Rob Bonta, marks the first public enforcement action by Bonta’s office against a cryptocurrency company.
Settlement Details
The civil settlement resolves allegations that Robinhood Crypto violated California law by not delivering cryptocurrencies that customers had purchased. This failure left users unable to access their assets and forced them to sell their holdings to exit the platform. Additionally, Robinhood was accused of misleading customers regarding the storage of their crypto assets and failing to connect them to multiple trading venues for competitive pricing.
As part of the settlement, Robinhood Crypto is required to:
- Allow customers to withdraw their crypto assets to their own wallets.
- Adhere to its advertised practices concerning trading and order handling.
Company’s Response
Lucas Moskowitz, Robinhood’s general counsel, expressed satisfaction with the settlement. He stated that the company is committed to making cryptocurrency more accessible and affordable. “We are pleased to settle and look forward to making cryptocurrency more accessible and affordable to everyone,” Moskowitz said.
Attorney General’s Statement
Attorney General Rob Bonta emphasized the significance of the settlement, stating, “This should send a strong message: whether you’re a brick-and-mortar store or a cryptocurrency company, you must adhere to California’s consumer and investor protection laws.”
The settlement underscores California’s ongoing efforts to enforce consumer protection standards in the rapidly evolving cryptocurrency sector.
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