Retail trading giant Robinhood is settling with the state of California for millions of dollars after an investigation uncovered users were stymied from withdrawing their funds.

Robinhood’s crypto arm reached a $3.9 million settlement with California’s Justice Department over a previous block on crypto withdrawals.

The company, which also is facing a U.S. Securities and Exchange Commission inquiry, finds itself in regulators’ crosshairs despite legal chief Dan Gallagher’s pledge to improve the company’s compliance culture and work collaboratively with regulators.

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.

By Jonathan Stempel (Reuters) -A cryptocurrency platform run by Robinhood Markets will pay $3.9 million to settle claims it failed to let customers withdraw cryptocurrency from their accounts from 2018 to 2022,

California authorities alleged that by blocking crypto transfers, Robinhood Crypto forced investors to sell their digital assets to realize a profit through the platform.

With another multi-million-dollar payout, is it business as usual for Robinhood? Or does the $3.9M settlement mark a turning point?

A crypto trading subsidiary of Robinhood Markets (NASDAQ:HOOD) reached a $3.9M settlement with the state of California. The allegations pertained to the platform Robinhood Crypto —failing to allow customers to withdraw their cryptocurrency from 2018 to 2022.

California Attorney General Rob Bonta announced a $3.9 million settlement with a Menlo Park cryptocurrency trading platform, Robinhood Crypto, LLC. According to the DOJ, the settlement comes after the cryptocurrency platform “failed to allow customers to withdraw their cryptocurrency from their Robinhood accounts from 2018 to 2022” and for failing to