Robinhood's Former Ban on Crypto Withdrawals Draws $3.9M Settlement in California
The popular trading app's sunsetted ban on customer crypto withdrawals caught the ire of California's attorney general.
Robinhood's crypto-trading subsidiary used to prevent customers from withdrawing the tokens they bought. Though Robinhood Crypto LLC abandoned that policy in 2022, on Wednesday its past practices earned a $3.9 million slap on the wrist from the state of California.
The California Department of Justice settled its investigation into what Robinhood's chief lawyer called "historical practices" in the popular trading app's crypto business from 2018 through 2022
The state's investigation notably treated the various cryptocurrencies that people can buy and sell through Robinhood as commodities. By allowing customers to buy cryptos but failing to let them take personal custody of the assets, the company violated California commodities law, according to a press release from California's Department of Justice.
Under the settlement Robinhood must continue to allow its customers to withdraw their cryptocurrencies from the app, as well as update disclosures regarding its custody practices.
Robinhood Crypto had previously disclosed it received a number of subpoenas from the California Attorney General regarding its trading platform, its business and operations and its coin listings – in addition to its disclosures and custody of customer assets. A spokesperson at Robinhood said to CoinDesk: "there is no ongoing investigation and this resolves the CA AG inquiry."
"We are pleased to put this matter behind us," said Lucas Moskowitz, Robinhood Markets' general counsel in an emailed statement. "The settlement fully resolves the Attorney General's concerns related to historical practices, and we look forward to continuing to make crypto more accessible and affordable to everyone."
Robinhood Crypto faces separate scrutiny from the U.S. Securities and Exchange Commission, which in May told the company it is preparing to file suit over alleged violations of federal securities laws.
More For You
需要了解的:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
CFTC Launches Digital Assets Pilot Allowing Bitcoin, Ether and USDC as Collateral
Acting Chair Caroline Pham has unveiled a first-of-its-kind U.S. program to permit tokenized collateral in derivatives markets, citing "clear guardrails" for firms.
What to know:
- The CFTC has launched a pilot program allowing BTC, ETH and USDC to be used as collateral in U.S. derivatives markets.
- The program is aimed at approved futures commission merchants and includes strict custody, reporting and oversight requirements.
- The agency also issued updated guidance for tokenized assets and withdrew outdated restrictions following the GENIUS Act.
