Robinhood hit with $3.9 million settlement over California crypto withdrawal ban

Robinhood’s cryptocurrency platform has been ordered to pay a $3.9 million dollar settlement over its practice between 2018 and 2022 of not allowing customers to withdraw their crypto.

California’s Department of Justice said on Wednesday (September 4) that their investigation found Robinhood violated California’s commodities laws, “by allowing customers, who hoped their investment would become more valuable shortly, to buy cryptocurrencies without actually delivering these assets to customers.