Robinhood (HOOD.US) settles with California for $3.9 million over cryptocurrency withdrawal ban

Robinhood's (HOOD.US) crypto trading subsidiary has agreed to pay $3.9 million to settle California charges related to the platform's failure to allow customers to withdraw their cryptocurrency between 2018 and 2022. The charges mainly involved Robinhood's crypto platform failing to allow customers to withdraw their cryptocurrency. California Attorney General Rob Bonta noted that Robinhood did not allow customers to withdraw the cryptocurrency they purchased to their wallets, forcing them to sell their crypto assets on the platform to exit the trade. Additionally, Robinhood did not disclose where customer assets were stored and claimed to connect customers to multiple trading venues to ensure competitive prices. The settlement marks the first public enforcement action by the California Department of Justice against a cryptocurrency company. As part of the settlement, the platform must allow users to withdraw their cryptocurrency assets to their personal wallets. The company did not admit or deny any wrongdoing. Lucas Moskowitz, general counsel of Robinhood, said in a statement that the company was pleased with the settlement and looked forward to making cryptocurrency "more accessible and affordable for everyone." As of the time of writing, Robinhood's stock price rose slightly by 0.05% to $19.12 before the market opened.