Robinhood received the SEC subpoena shortly after FTX collapsed

Robinhood, a popular mobile trading platform for stocks that also allows users to buy and sell cryptocurrency, received an investigative subpoena from the US Securities and Exchange Commission (SEC) in December 2022 regarding the cryptocurrency business.

The subpoena asked for information about Robinhood’s “supported cryptocurrencies, custody of cryptocurrencies, and platform operations,” according to the company’s annual report for 2022, filed Monday.

The reference to the annual report is brief and does not specify why the subpoena was issued or what information the SEC is seeking.

A spokesperson for Robinhood declined to comment when contacted luck. An SEC spokesman said luck that it “does not comment on the existence or non-existence of a possible investigation.”

The subpoena, which came shortly after cryptocurrency exchange FTX declared bankruptcy in November 2022, comes as Robinhood struggles to reinvent its crypto business. The company reported continued decline of his crypto trading income in the fourth quarter of 2022 and tried to remove his association with Sam Bankman-Fried, the disgraced founder of FTX, after its board approved the plans to buy back more than $550 million worth of shares purchased by Bankman-Fried in 2022.

The SEC subpoena also comes amid a broader push by the agency to investigate, and in many cases punish, crypto and crypto-related companies.

In January, the SEC ordered both Gemini, a cryptocurrency exchange founded by the Winklevoss twins, as well as Genesis, owned by the famous cryptocurrency investor Barry Silbert, with the unregistered offering and sale of securities through the companies’ joint yield-bearing product: Gemini Earn.

In February, the government arm responsible for managing the securities market reached a $30 million settlement with Krakenone of the largest cryptocurrency exchanges, after it claims that part of the staking of the exchange is an offer of securities.

And most recently, the SEC reportedly told Paxos, a stablecoin issuer, that it intended to sue the company for its work on BUSD, a stablecoin pegged to the US dollar issued in partnership with Binance, the world’s largest cryptocurrency exchange by trading volume. It is reported that Paxos in an interview with the SEC because of the threat of a lawsuit.

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