Robinhood Crypto Settles $3.9 Million for Failing to Deliver Cryptocurrency Withdrawals

Robinhood Crypto, a division of the trading platform Robinhood Markets, has agreed to a $3.9 million settlement following accusations that it blocked customers from withdrawing cryptocurrency purchased on the platform. The settlement agreement, which was announced on Sept. 4 by California Attorney General Rob Bonta, resolves a state investigation into the company’s alleged violations of the California Commodities Law. According to Bonta’s office, Robinhood misled customers by failing to deliver the cryptocurrencies they purchased and preventing them from withdrawing their assets. As a consequence of Robinhood’s actions, customers were forced to sell their cryptocurrency holdings to exit the platform. Bonta also said that Robinhood falsely advertised its access to multiple trading venues, which it claimed would ensure competitive pricing for customers....