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The company said it received a so-called "Wells notice," which the SEC issues when it is planning to bring enforcement action against them. Such notices do not necessarily mean the company has engaged in wrongdoing.
Robinhood believes that a lawsuit is coming from the SEC for securities violation after the given notice.
Robinhood, the popular trading platform, has received a Wells notice from the United States Securities and Exchange Commission (SEC), leading to a 2.5% drop.
The crypto space is outraged over the SEC's seeming "abuse" of the Wells process as the regulator issued a Wells Notice to Robinhood's crypto arm just weeks after Uniswap received a notice.
Retail trading platform Robinhood Markets said on Monday its cryptocurrency trading arm received a Wells notice from the U.S. Securities and Exchange Commission on May 4. Robinhood's...