BlockBeats reported on September 5 that Robinhood’s cryptocurrency trading subsidiary had prevented customers from withdrawing the tokens they purchased in the past. Although Robinhood Crypto LLC abandoned the policy in 2022, its past practices were fined $3.9 million by the State of California.
The California Department of Justice investigated Robinhood’s “historical practices” in its crypto business between 2018 and 2022. According to a press release from the California Department of Justice, Robinhood allowed customers to purchase cryptocurrencies but did not allow them to personally custody the assets, which violated the California Commodity Law. Under the settlement, Robinhood must continue to allow its customers to withdraw cryptocurrencies from the app and update disclosures about its custody practices.
