The US Securities and Exchange Commission (SEC) is preparing to file a lawsuit against mobile trading app Robinhood.
The SEC sent Robinhood a Wells Notice regarding the cryptocurrency services it offers to customers. The notice addressed Robinhood's cryptocurrency listings, custody services, and other activities on its platform.
The Securities and Exchange Commission sends Wells notices to individuals and entities it is investigating to indicate that it is preparing to file a lawsuit against them.
Robinhood management said they were “disappointed” by the SEC's action. Robinhood (HOOD) shares started to lose value after the SEC announcement.
