Robinhood Markets Under Investigation: Subpoena Requested by SEC and California AG

The trading platform and brokerage firm, Robinhood Markets, Inc. (HOOD) has been under increasing scrutiny recently in the wake of a busy week of cryptocurrency hires and the releasing of 1099 tax forms. In the latest trading session, Robinhood closed at $9.72, marking a -1.82% move from the previous day. This news comes on the heels of Robinhood being the biggest holder of Dogecoin in the world, currently holding 33,562,118,378 DOGE, and the launch of its new crypto wallet on Apple's mobile operating system with support for a handful of prominent cryptocurrencies.

The Securities and Exchange Commission (SEC) and the California Attorney General's office have both requested a subpoena to investigate the trading platform. This subpoena has been requested to look into the activities of Robinhood Markets and its cryptocurrency business. The SEC and California AG are specifically looking into whether or not the platform has been trading speculative meme stocks and cryptocurrencies.

This news follows a string of other regulatory issues Robinhood has faced in the past. In December 2018, the SEC charged Robinhood Markets with failing to adequately disclose its order routing practices. This led to fines of $1.25 million for the company.

The SEC, in its investigation into Robinhood, is also looking into whether Robinhood failed to provide customers with the best execution for their trades. This is an issue that has been brought up before, and is one that will continue to be monitored as the investigation continues.

The California Attorney General's office is also reportedly investigating Robinhood's handling of customer funds. This investigation is also looking into whether or not the trading platform has been using customer funds for its own benefit.

The SEC and California AG's investigations come at a time when Robinhood is looking to expand its presence in the cryptocurrency market. The trading platform recently announced the launch of its new crypto wallet on Apple's mobile operating system with support for a handful of prominent cryptocurrencies.

It remains to be seen how this investigation will affect the future of Robinhood Markets, but it is clear that the company is under increased scrutiny. It will be interesting to see how the SEC and California AG's investigation into the trading platform progresses.