Robinhood received an SEC subpoena following the FTX collapse

In December 2022, SEC sent Robinhood, the online broker, a subpoena relating to the platform’s cryptocurrency services, according to the annual отчета.

The company noted that this occurred shortly after the November FTX exchange collapse. The regulator requested information on questions related to the digital assets supported by the platform, their custody and operations.

In a disclosure of business risks, the firm acknowledged that the uncertainty surrounding the status of digital assets poses a material problem and could lead to the closure of the corresponding services.

“To the extent that the SEC or a court determines that any cryptocurrencies supported by our platform are securities, that decision could hinder us from continuing to support trading of these assets and their custody,” the document states.

The firm noted that the supported cryptocurrencies are being analysed under internal rules for compliance with U.S. securities laws. However, the negative consequences for the business would arise both from asset delisting by regulator demand and from a similar voluntary decision, Robinhood acknowledged.

In Q4 2022, the company’s revenue from digital asset-related operations fell by 24%, to $39 million. In the previous three months the decline stood at 12%.

Meanwhile, the crypto wallet waitlist surpassed 1 million users. In September 2022, 10,000 people, the first to sign up for early access to the iOS app, gained the opportunity to test a beta version.

In the run-up to the company’s IPO in July 2021, co-founder and CEO Vlad Tenev described digital assets as the foundation of Robinhood’s future development.