Robinhood Agrees to $3.9 Million Settlement with California Over Crypto Withdrawal Violations

The settlement addresses accusations of preventing customers from withdrawing digital assets and misleading users about trading practices.

Robinhood's crypto arm allegedly blocked crypto withdrawals from 2018 to 2022, violating California's Commodity Code.
The California Department of Justice's investigation revealed Robinhood misled users about asset custody and trading venues.
The settlement mandates Robinhood to allow crypto withdrawals and improve transparency in trading and order handling.
Robinhood did not admit to any wrongdoing but agreed to the settlement to resolve the state's inquiry.
This marks the first public action by California's regulator against a cryptocurrency firm.