Robinhood Crypto agrees to settlement in the US over past withdrawal restrictions.
The company must now allow crypto withdrawals and update its disclosures.
Redondo Beach, California, United States
The
cryptocurrency arm of the zero-free trading giant Robinhood has agreed to pay
$3.9 million to settle allegations by California's Attorney General that it
violated state commodities law by prohibiting customers from withdrawing
cryptocurrency from their accounts between 2018 and 2022.
Robinhood Crypto Settles
with California for $3.9 Million
The
settlement, announced
yesterday (Wednesday) by California Attorney General Rob Bonta, marks the
first public action by the state's Department of Justice against a
cryptocurrency company.
According
to the Attorney General's office, Robinhood sold commodities contracts in
violation of California law by allowing customers to purchase cryptocurrencies
without actually delivering the assets. During the period in question,
customers were unable to withdraw their crypto and had to sell them back to
Robinhood to exit the platform.
Attorney General Rob Bonta
“Our
investigation and settlement with Robinhood 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,” said Attorney
General Bonta. “I am dedicated to using all the tools available to my office to
protect California consumers in the face of advancing technology in the
marketplace.”
The
investigation also found that Robinhood misled customers about its trading
practices, including claims that it would connect to multiple trading venues to
ensure competitive prices. Additionally, the company failed to disclose
instances where it arranged for trading venues to hold customer assets for
extended periods.
Under the
terms of the settlement, Robinhood must allow customers to withdraw crypto
assets to their own wallets and update its disclosures regarding trading and
custody practices. The company did not admit or deny wrongdoing as part of the
agreement.
Lucas Moskowitz
“We
are pleased to put this matter behind us,” added Lucas Moskowitz,
Robinhood Markets' General Counsel. “The settlement fully resolves the
Attorney General's concerns related to historical practices, and we look
forward to continuing to make crypto more accessible and affordable to
everyone.”
Robinhood Crypto’s
Additional Regulatory Problems
The
settlement comes as Robinhood faces separate scrutiny from the US Securities
and Exchange Commission (SEC), which indicated in May that it is preparing to
file suit over alleged violations of federal securities laws.
“On
May 4, 2024, Robinhood Crypto (RHC) received a 'Wells Notice' from
the Staff of the SEC stating that the Staff has advised RHC that it made a 'preliminary determination' to recommend that the SEC file an
enforcement action against RHC alleging violations of Sections 15(a) and 17A of
the Securities Exchange Act of 1934, as amended,” Robinhood mentioned in a
filing with the regulator.
The SEC's
recent measures are in line with actions taken against other cryptocurrency
exchanges like Coinbase and Binance. This reflects the heightened scrutiny that
platforms in the digital asset sector are experiencing, as well as the
persistent legal confrontations between regulatory bodies and industry
stakeholders.
The
cryptocurrency arm of the zero-free trading giant Robinhood has agreed to pay
$3.9 million to settle allegations by California's Attorney General that it
violated state commodities law by prohibiting customers from withdrawing
cryptocurrency from their accounts between 2018 and 2022.
Robinhood Crypto Settles
with California for $3.9 Million
The
settlement, announced
yesterday (Wednesday) by California Attorney General Rob Bonta, marks the
first public action by the state's Department of Justice against a
cryptocurrency company.
According
to the Attorney General's office, Robinhood sold commodities contracts in
violation of California law by allowing customers to purchase cryptocurrencies
without actually delivering the assets. During the period in question,
customers were unable to withdraw their crypto and had to sell them back to
Robinhood to exit the platform.
Attorney General Rob Bonta
“Our
investigation and settlement with Robinhood 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,” said Attorney
General Bonta. “I am dedicated to using all the tools available to my office to
protect California consumers in the face of advancing technology in the
marketplace.”
The
investigation also found that Robinhood misled customers about its trading
practices, including claims that it would connect to multiple trading venues to
ensure competitive prices. Additionally, the company failed to disclose
instances where it arranged for trading venues to hold customer assets for
extended periods.
Under the
terms of the settlement, Robinhood must allow customers to withdraw crypto
assets to their own wallets and update its disclosures regarding trading and
custody practices. The company did not admit or deny wrongdoing as part of the
agreement.
Lucas Moskowitz
“We
are pleased to put this matter behind us,” added Lucas Moskowitz,
Robinhood Markets' General Counsel. “The settlement fully resolves the
Attorney General's concerns related to historical practices, and we look
forward to continuing to make crypto more accessible and affordable to
everyone.”
Robinhood Crypto’s
Additional Regulatory Problems
The
settlement comes as Robinhood faces separate scrutiny from the US Securities
and Exchange Commission (SEC), which indicated in May that it is preparing to
file suit over alleged violations of federal securities laws.
“On
May 4, 2024, Robinhood Crypto (RHC) received a 'Wells Notice' from
the Staff of the SEC stating that the Staff has advised RHC that it made a 'preliminary determination' to recommend that the SEC file an
enforcement action against RHC alleging violations of Sections 15(a) and 17A of
the Securities Exchange Act of 1934, as amended,” Robinhood mentioned in a
filing with the regulator.
The SEC's
recent measures are in line with actions taken against other cryptocurrency
exchanges like Coinbase and Binance. This reflects the heightened scrutiny that
platforms in the digital asset sector are experiencing, as well as the
persistent legal confrontations between regulatory bodies and industry
stakeholders.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Binance Junior Puts Crypto in Young Hands, but Keeps the Wallet with Mom and Dad
Marketing in 2026 Audiences, Costs, and Smarter AI
Marketing in 2026 Audiences, Costs, and Smarter AI
As brokers eye B2B business and compete with fintechs and crypto exchanges alike, marketers need to act wisely with often limited budgets. AI can offer scalable solutions, but only if used properly.
Join seasoned marketing executives and specialists as they discuss the main challenges they identify in financial services in 2026 and how they address them.
Attendees of this session will walk away with:
- A nuts-and-bolts account of acquisition costs across platforms and geos
- Analysis of today’s multi-layered audience segments and differences in behaviour
- First-hand account of how global brokers balance consistency and local flavour
- Notes from the field about intelligently using AI and automation in marketing
Speakers:
-Yam Yehoshua, Editor-In-Chief at Finance Magnates
-Federico Paderni, Managing Director for Growth Markets in Europe at X
-Jo Benton, Chief Marketing Officer, Consulting | Fractional CMO
-Itai Levitan, Head of Strategy at investingLive
-Roberto Napolitano, CMO at Innovate Finance
-Tony Cross, Director at Monk Communications
#fmls #fmls25 #fmevents #FintechMarketing #AI #DigitalStrategy #Fintech #Innovation
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As brokers eye B2B business and compete with fintechs and crypto exchanges alike, marketers need to act wisely with often limited budgets. AI can offer scalable solutions, but only if used properly.
Join seasoned marketing executives and specialists as they discuss the main challenges they identify in financial services in 2026 and how they address them.
Attendees of this session will walk away with:
- A nuts-and-bolts account of acquisition costs across platforms and geos
- Analysis of today’s multi-layered audience segments and differences in behaviour
- First-hand account of how global brokers balance consistency and local flavour
- Notes from the field about intelligently using AI and automation in marketing
Speakers:
-Yam Yehoshua, Editor-In-Chief at Finance Magnates
-Federico Paderni, Managing Director for Growth Markets in Europe at X
-Jo Benton, Chief Marketing Officer, Consulting | Fractional CMO
-Itai Levitan, Head of Strategy at investingLive
-Roberto Napolitano, CMO at Innovate Finance
-Tony Cross, Director at Monk Communications
#fmls #fmls25 #fmevents #FintechMarketing #AI #DigitalStrategy #Fintech #Innovation
Connect with us at:
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Much like their traders in the market, brokers must diversify to manage risk and stay resilient. But that can get costly, clunky, and lengthy.
This candid panel brings together builders across the trading infrastructure space to uncover the shifting dynamics behind tools, interfaces, and full-stack ambitions.
Attendees will hear:
-Why platform dependency has become one of the most overlooked risks in the trading business?
-Buy vs. build: What do hybrid models look like, and why are industry graveyards filled with failed ‘killer apps’?
-How AI is already changing execution, risk, and reporting—and what’s next?
-Which features, assets, and tools gain the most traction, and where brokers should look for tech-driven retention?
Speakers:
-Stephen Miles, Chief Revenue Officer at FYNXT
-John Morris, Co-Founder at FXBlue
-Matthew Smith, Group Chair & CEO at EC Markets
-Tom Higgins, Founder & CEO at Gold-i
-Gil Ben Hur, Founder at 5% Group
#fmls #fmls25 #fmevents #Brokers #Trading #Fintech #FintechInnovation #TradingTechnology #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
Much like their traders in the market, brokers must diversify to manage risk and stay resilient. But that can get costly, clunky, and lengthy.
This candid panel brings together builders across the trading infrastructure space to uncover the shifting dynamics behind tools, interfaces, and full-stack ambitions.
Attendees will hear:
-Why platform dependency has become one of the most overlooked risks in the trading business?
-Buy vs. build: What do hybrid models look like, and why are industry graveyards filled with failed ‘killer apps’?
-How AI is already changing execution, risk, and reporting—and what’s next?
-Which features, assets, and tools gain the most traction, and where brokers should look for tech-driven retention?
Speakers:
-Stephen Miles, Chief Revenue Officer at FYNXT
-John Morris, Co-Founder at FXBlue
-Matthew Smith, Group Chair & CEO at EC Markets
-Tom Higgins, Founder & CEO at Gold-i
-Gil Ben Hur, Founder at 5% Group
#fmls #fmls25 #fmevents #Brokers #Trading #Fintech #FintechInnovation #TradingTechnology #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
Educators, IBs, And Other Regional Growth Drivers
Educators, IBs, And Other Regional Growth Drivers
When acquisition costs rise and AI generated reviews are exactly as useful as they sound, performing and fair partners can make or break brokers.
This session looks at how these players are shaping access, trust and user engagement, and what the most effective partnership models look like in 2025.
Key Themes:
- Building trader communities through education and local expertise
- Aligning broker incentives with long-term regional strategies
- Regional regulation and the realities of compliant acquisition
- What’s next for performance-driven partnerships in online trading
Speakers:
-Adam Button, Chief Currency Analyst at investingLive
-Zander Van Der Merwe, Key Individual & Head of Sales at TD Markets
-Brunno Huertas, Regional Manager – Latin America at Tickmill
-Paul Chalmers, CEO at UK Trading Academy
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #BrokerGrowth #FintechPartnerships #RegionalMarkets
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
When acquisition costs rise and AI generated reviews are exactly as useful as they sound, performing and fair partners can make or break brokers.
This session looks at how these players are shaping access, trust and user engagement, and what the most effective partnership models look like in 2025.
Key Themes:
- Building trader communities through education and local expertise
- Aligning broker incentives with long-term regional strategies
- Regional regulation and the realities of compliant acquisition
- What’s next for performance-driven partnerships in online trading
Speakers:
-Adam Button, Chief Currency Analyst at investingLive
-Zander Van Der Merwe, Key Individual & Head of Sales at TD Markets
-Brunno Huertas, Regional Manager – Latin America at Tickmill
-Paul Chalmers, CEO at UK Trading Academy
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #BrokerGrowth #FintechPartnerships #RegionalMarkets
Connect with us at:
🔗 LinkedIn: / financemagnates-events
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🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
The Leap to Everything App: Are Brokers There Yet?
The Leap to Everything App: Are Brokers There Yet?
As the arms race to bundle investing, personal finance, and wallets under super apps grows fiercer, brokers are caught between a rock and a hard place.
This session explores unexpected ways for industry players to collaborate as consumer habits evolve, competitors eye the traffic, and regulation becomes more nuanced.
Speakers:
-Laura McCracken,CEO | Advisory Board Member at Blackheath Advisors | The Payments Association
-Slobodan Manojlović,Vice President | Lead Software Engineer at JP Morgan Chase & Co.
-Jordan Sinclair, President at Robinhood UK
-Simon Pelletier, Head of Product at Yuh
Gerald Perez, CEO at Interactive Brokers UK
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
As the arms race to bundle investing, personal finance, and wallets under super apps grows fiercer, brokers are caught between a rock and a hard place.
This session explores unexpected ways for industry players to collaborate as consumer habits evolve, competitors eye the traffic, and regulation becomes more nuanced.
Speakers:
-Laura McCracken,CEO | Advisory Board Member at Blackheath Advisors | The Payments Association
-Slobodan Manojlović,Vice President | Lead Software Engineer at JP Morgan Chase & Co.
-Jordan Sinclair, President at Robinhood UK
-Simon Pelletier, Head of Product at Yuh
Gerald Perez, CEO at Interactive Brokers UK
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
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🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
Mind The Gap: Can Retail Investors Save the UK Stock Market?
Mind The Gap: Can Retail Investors Save the UK Stock Market?
As the dire state of listing and investment in the UK goes from a financial services problem to a national challenge, the retail investing industry is taken to task.
Join a host of executives and experts for a candid conversation about the future of millions of Brits, as seen from a financial services standpoint:
-Are they happy with the Leeds Reform, in principle and in practice?
-Is it the government’s job to affect the ‘saver’ mentality? Is it doing well?
-What can brokers and fintechs do to spur UK investment?
-How can the FCA balance greater flexibility with consumer protection?
Speakers:
-Adam Button, Chief Currency Analyst at investingLive
-Nicola Higgs, Partner at Latham & Watkins
-Dan Lane, Investment Content Lead at Robinhood UK
-Jack Crone, PR & Public Affairs Lead at IG
-David Belle, Founder at Fink Money
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #RetailInvesting #UKFinance
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
As the dire state of listing and investment in the UK goes from a financial services problem to a national challenge, the retail investing industry is taken to task.
Join a host of executives and experts for a candid conversation about the future of millions of Brits, as seen from a financial services standpoint:
-Are they happy with the Leeds Reform, in principle and in practice?
-Is it the government’s job to affect the ‘saver’ mentality? Is it doing well?
-What can brokers and fintechs do to spur UK investment?
-How can the FCA balance greater flexibility with consumer protection?
Speakers:
-Adam Button, Chief Currency Analyst at investingLive
-Nicola Higgs, Partner at Latham & Watkins
-Dan Lane, Investment Content Lead at Robinhood UK
-Jack Crone, PR & Public Affairs Lead at IG
-David Belle, Founder at Fink Money
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #RetailInvesting #UKFinance
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
