Robinhood Crypto Fined $3.9 Million After Not Allowing Cryptocurrency Withdrawals Between 2018-2022

Robinhood Crypto Fined for Blocking Customer Withdrawals

The cryptocurrency division of Robinhood has agreed to pay a $3.9 million fine to resolve an inquiry into its previous practices, which included not allowing consumers to withdraw money between 2018 and 2022. California’s Department of Justice stated on Wednesday that Attorney General Rob Bonta successfully negotiated the deal with Robinhood Crypto. The investigation found that users had to sell their cryptocurrencies back to Robinhood in order to use the trading site again because they were unable to withdraw them.

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,

Bonta

Robinhood Crypto Settlement: Users Can Now Withdraw Holdings to Their Wallets

As a condition of the settlement, Robinhood has to guarantee that its users can take their cryptocurrency holdings out of the platform and deposit them into their wallets. Users must also be informed that in the event of an incident that raises questions about the network security of a cryptocurrency asset, the platform will custody crypto and may postpone settlement with trading venues. The company is happy to put this matter behind them, according to a statement sent by the general counsel at Robinhood, Lucas Moskowitz.

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,

Moskowitz

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