American commission-free broker, Robinhood Markets Inc (Nasdaq: HOOD), revealed in a Monday filing that it received an investigative subpoena from the US securities regulator over inquiries around cryptocurrency listings.The subpoena was issued last December, and its primary purpose was to know the operations of Robinhood’s crypto arm. Apart from crypto listing details, the subpoena also sought information about the custody of cryptocurrencies
Cryptocurrencies
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw
Read this Term and platform operations.“We received an investigative subpoena from the SEC regarding, among other topics, RHC’s cryptocurrency listings, custody of cryptocurrencies, and platform operations,” the 10-K filing of the broker stated.A court issues an investigative subpoena at a request of another person or an organization. The purpose of such a subpoena is to extract information and evaluate the viability of a possible legal action against the party in question.Keep Reading An Aftermath of Crypto Industry CollapsesThe subpoena against Robinhood came in the aftermath of the FTX collapse. The misdeeds of Sam Bankman-Fried and the exposure of the industry to his companies resulted in a series of bankruptcies. The FTX fiasco came when the crypto industry was still reeling from the impacts of the collapse of Terra-Luna and Three Arrows Capital earlier last year.Robinhood moved into cryptocurrency trading in 2018 when retail demand for digital assets soared globally. It rose into popularity over other American crypto exchanges for offering meme tokens, along with Bitcoin
Bitcoin
While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that
While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that
Read this Term and other top cryptocurrencies. Soon, the broker starts generating a significant portion of its transactional revenue from cryptocurrencies. However, this the demand is shrinking. In the fourth quarter of 2020, revenue from cryptocurrency trading took a massive hit as it declined to $39 million, a 24 percent fall from the third quarter due to lower crypto trading volumes. It was the second consecutive quarter exhibiting a decline in crypto revenue, as the figure also dropped 12 percent in Q3.Robinhood also has ties with Bankman-Fried, who purchased 7.6 percent of the company last year. Robonhood’s board approved repurchasing all of these shares controlled by Bankman-Fried, who is facing criminal charges in the US.Meanwhile, the latest SEC subpoena was not the first inquiry faced by Robinhood Crypto LLC. It received a subpoena from the California Attorney General’s Office in April 2021 seeking similar information. It also faced scrutiny by the Massachusetts Securities Division in August 2021 for allegedly targeting inexperienced traders.Last August, the New York District of Financial Services (NYDFS) slapped a $30 million monetary penalty on Robinhood’s crypto division for failure to “invest the proper resources and attention to develop and maintain a culture of compliance.”American commission-free broker, Robinhood Markets Inc (Nasdaq: HOOD), revealed in a Monday filing that it received an investigative subpoena from the US securities regulator over inquiries around cryptocurrency listings.The subpoena was issued last December, and its primary purpose was to know the operations of Robinhood’s crypto arm. Apart from crypto listing details, the subpoena also sought information about the custody of cryptocurrencies
Cryptocurrencies
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw
Read this Term and platform operations.“We received an investigative subpoena from the SEC regarding, among other topics, RHC’s cryptocurrency listings, custody of cryptocurrencies, and platform operations,” the 10-K filing of the broker stated.A court issues an investigative subpoena at a request of another person or an organization. The purpose of such a subpoena is to extract information and evaluate the viability of a possible legal action against the party in question.Keep Reading An Aftermath of Crypto Industry CollapsesThe subpoena against Robinhood came in the aftermath of the FTX collapse. The misdeeds of Sam Bankman-Fried and the exposure of the industry to his companies resulted in a series of bankruptcies. The FTX fiasco came when the crypto industry was still reeling from the impacts of the collapse of Terra-Luna and Three Arrows Capital earlier last year.Robinhood moved into cryptocurrency trading in 2018 when retail demand for digital assets soared globally. It rose into popularity over other American crypto exchanges for offering meme tokens, along with Bitcoin
Bitcoin
While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that
While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that
Read this Term and other top cryptocurrencies. Soon, the broker starts generating a significant portion of its transactional revenue from cryptocurrencies. However, this the demand is shrinking. In the fourth quarter of 2020, revenue from cryptocurrency trading took a massive hit as it declined to $39 million, a 24 percent fall from the third quarter due to lower crypto trading volumes. It was the second consecutive quarter exhibiting a decline in crypto revenue, as the figure also dropped 12 percent in Q3.Robinhood also has ties with Bankman-Fried, who purchased 7.6 percent of the company last year. Robonhood’s board approved repurchasing all of these shares controlled by Bankman-Fried, who is facing criminal charges in the US.Meanwhile, the latest SEC subpoena was not the first inquiry faced by Robinhood Crypto LLC. It received a subpoena from the California Attorney General’s Office in April 2021 seeking similar information. It also faced scrutiny by the Massachusetts Securities Division in August 2021 for allegedly targeting inexperienced traders.Last August, the New York District of Financial Services (NYDFS) slapped a $30 million monetary penalty on Robinhood’s crypto division for failure to “invest the proper resources and attention to develop and maintain a culture of compliance.”