Online brokerage Robinhood Markets (HOOD) says it has received a subpoena from the U.S. Securities and Exchange Commission (SEC) as the American regulator ramps up its investigation of the firm’s cryptocurrency business.
News of the subpoena was revealed in a regulatory filing made by the Menlo Park, California-based company and comes as the SEC cracks down on cryptocurrencies and what it calls “unregulated securities.”
The U.S. regulator that is responsible for policing Wall Street has been intensifying its investigation of cryptocurrencies since the FTX exchange filed for bankruptcy last November, citing $8 billion U.S. in losses and more than one million creditors.
The collapse of FTX has led to contagion across the global crypto sector, with several other digital exchanges and lenders filing for bankruptcy or ceasing operations in recent months.
The SEC has focused its enforcement efforts lately on stablecoins, which are cryptocurrencies tied to the value of another asset, typically the U.S. dollar.
Robinhood Markets is known for attracting retail investors who use its platform to trade meme stocks and cryptocurrencies.
Robinhood’s stock has declined 20% over the past year to trade at $9.72 U.S. per share.
