Robinhood crypto business slapped with SEC Wells Notice

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The United States Securities and Exchange Commission (SEC) has issued a Wells Notice to the popular trading platform Robinhood.

Following the news of the Wells Notice, Robinhood (HOOD) share price fell 2.5% in pre-market trading, to $17.95 as of 12:50 pm UTC. The Wells notice was issued on May 4, according to court filings.

The Wells notice is a letter sent from the securities regulator that concludes the conclusion of its investigation over the respondent, in this case, Robinhood’s United States-based crypto business.

According to the filing, the SEC has been investigating Robinhood’s cryptocurrency listings, crypto custodian operations and made the “preliminary determination” to recommend that the SEC file an enforcement action related to alleged securities violations.

This is a developing story, and further information will be added as it becomes available.