The California Department of Justice settled its investigation into what Robinhood's chief lawyer called 'historical practices' in the popular trading app's crypto business from 2018 through 2022.
By allowing customers to buy cryptos but failing to let them take personal custody of the assets, the company violated California commodities law, according to a press release from California's Department of Justice.
Under the settlement Robinhood must continue to allow its customers to withdraw their cryptocurrencies from the app, as well as update disclosures regarding its custody practices.
Despite settling this issue, Robinhood Crypto faces separate scrutiny from the U.S. Securities and Exchange Commission, which in May told the company it is preparing to file suit over alleged violations of federal securities laws.
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