Robinhood Crypto
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anchored·2XJdrS…1yuCSummary
Robinhood Crypto, LLC is the cryptocurrency trading subsidiary of publicly-traded Robinhood Markets, Inc. (NASDAQ: HOOD), offering retail crypto trading in the United States and Europe. The entity has accumulated over $170 million in regulatory fines and settlements across multiple U.S. jurisdictions since 2020 related to AML deficiencies, misleading disclosures, customer asset restrictions, and cybersecurity failures, though it remains a licensed and operational platform with growing global ambitions including the $200 million acquisition of Bitstamp completed in June 2025.
Connected Entities
1 entities · 10 linked investigations- + 6 more
Timeline(16 events)
2013
Robinhood Markets founded by Vladimir Tenev and Baiju Bhatt in Menlo Park, California.
CEO Today Magazine — Robinhood's Founders & How to Start a Revolution2018
Robinhood Crypto launches, allowing retail customers to trade Bitcoin and Ethereum without commissions.
California AG Settlement Press Release17 December 2020
SEC charges Robinhood Financial with misleading customers about payment for order flow revenue and failure to seek best execution; Robinhood agrees to pay $65 million.
SEC Press Release 2020-32128 January 2021
Robinhood restricts trading in GameStop and other meme stocks and cryptocurrencies due to NSCC collateral demands of approximately $3 billion, sparking congressional hearings and class-action lawsuits.
TechCrunch — Robinhood almost imploded during GameStop meme stock chaos30 June 2021
FINRA fines Robinhood $70 million (largest FINRA fine ever at that time) for misleading customers about margin, approving unqualified options traders, and failing to prevent system outages.
CNBC — Robinhood to pay $70 million for outages and misleading customers29 July 2021
Robinhood Markets IPO on Nasdaq (HOOD) at $38/share; shares fall 8% on first day.
CNBC — Robinhood (HOOD) IPO: Stock falls in Nasdaq debut3 November 2021
Data breach affecting approximately 7 million Robinhood users via social engineering of a customer support employee; attacker attempts extortion.
Axios — Robinhood says data breach exposed personal information of at least 7 million users2 August 2022
NYDFS issues $30 million consent order against Robinhood Crypto for AML, cybersecurity, and consumer protection violations; first-ever DFS crypto enforcement action.
NYDFS Press ReleaseJune 2023
Robinhood delists Cardano (ADA), Polygon (MATIC), and Solana (SOL) following SEC classification of those tokens as unregistered securities in actions against Coinbase and Binance.
Robinhood Crypto — SEC Wells Notice coverage4 May 2024
Robinhood Crypto receives SEC Wells notice indicating preliminary determination to recommend enforcement action for alleged violations of the Securities Exchange Act.
SEC EDGAR Form 8-K — Robinhood Crypto Wells Notice6 June 2024
Robinhood announces agreement to acquire cryptocurrency exchange Bitstamp for approximately $200 million in cash.
Robinhood Investor Relations — Robinhood to Acquire Bitstamp4 September 2024
California AG secures $3.9 million settlement with Robinhood Crypto for blocking crypto withdrawals from 2018–2022 and misleading customers about order handling; first California crypto enforcement action.
California AG Press Release13 January 2025
SEC imposes $45 million combined penalty on Robinhood Securities LLC and Robinhood Financial LLC for violations of more than ten securities law provisions including cybersecurity failures and suspicious activity reporting.
SEC Press Release 2025-521 February 2025
SEC Enforcement Division closes investigation into Robinhood Crypto with no enforcement action, following the May 2024 Wells notice.
Robinhood Newsroom — SEC Closes Investigation7 March 2025
FINRA announces $29.75 million settlement with Robinhood for compliance failures including AML deficiencies and failure to verify customer identities.
CoinCentral — Robinhood Agrees to $29.75 Million Settlement with FINRA2 June 2025
Robinhood completes $200 million acquisition of Bitstamp, gaining over 50 global licenses and its first institutional crypto business.
The Block — Robinhood completes $200 million acquisition of crypto exchange BitstampDecision Log
- hash: 68iJvkGesW5rTbrjHqfcUrNjdZED3XyPqwdo6G2jHa1v
- hash: 4fSro4gVLXxsAhB1xuZZ7cKT43DvrUuTBqpnS4xLLj1v
- hash: 6VoFine1cgxqSfRTPEVRpjqA32w8RR3YP1yXYP4JMMbt
This investigation is cryptographically anchored to the Solana blockchain (3 events). 19 of 20 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-6
generated: 5/31/2026, 5:41:34 PM
last updated: 7/26/2026, 2:10:28 PM
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