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.