Robinhood Pays $3.9 Million to Settle California DOJ Investigation

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Robinhood Crypto’s past practices have resulted in a $3.9 million penalty as the company failed to allow customers to withdraw cryptocurrency between the years 2018 to 2022.

The California Department of Justice, led by Attorney General Rob Bonta, announced on Wednesday that they had reached a settlement with Robinhood Crypto.

The investigation concluded that customers were unable to withdraw their crypto assets and were forced to sell them back to the platform in order to exit the trading platform.

According to the California DOJ, Robinhood had falsely advertised that it connected to multiple trading venues in order to provide customers with the most competitive prices between them.

However, this was not always the case. Bonta emphasized the importance of following consumer and investor protection laws, stating that this settlement should serve as a warning to all companies – whether physical or in the cryptocurrency industry.