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Robinhood Crypto, LLC, has agreed to pay a $3.9 million settlement with the California Attorney General’s Office over allegations of consumer protection violations. The settlement, <a href="https://oag.ca.gov/news/press-releases/attorney-general-bonta-secures-39-million-settlement-cryptocurrency-company" rel="noopener noreferrer nofollow">announced</a> by Attorney General Rob Bonta on Wednesday, focuses on Robinhood&#39;s failure to allow customers to withdraw their cryptocurrency holdings between 2018 and 2022. The agreement also addresses misleading disclosures about the company&#39;s trading practices.Violations of State LawThe agreement resolves a broader investigation into violations of the California Commodities Law (CCL). Attorney General Bonta emphasized that the state’s robust consumer protection laws apply equally to emerging industries like cryptocurrency.  He underscored his commitment to safeguarding California residents as technological advancements reshape the marketplace. Bonta stated, &#34;Whether you&#39;re a brick-and-mortar store or a cryptocurrency company, you must adhere to California&#39;s consumer and investor protection laws,&#34;The settlement requires Robinhood to pay a $3.9 million penalty and implement significant changes to its <a href="https://cryptotale.org/robinhoods-dan-gallagher-touted-as-potential-sec-chair-under-trump/" rel="noopener noreferrer nofollow">business operations</a>. These changes include ensuring customers can withdraw their cryptocurrency assets and providing accurate information about its trading practices.DOJ Investigation FindingsFollowing consumer complaints, the California Department of Justice scrutinized Robinhood. The investigation revealed that Robinhood sold commodities contracts in violation of the CCL. This allowed customers to purchase cryptocurrencies without actually transferring those assets to them. Instead, customers were forced to sell their cryptocurrency back to Robinhood if they wished to exit the platform.<a href="https://cryptotale.org/robinhood-settles-for-3-9-million-in-crypto-withdrawal-case/" rel="noopener noreferrer nofollow">Read more on Cryptotale.</a>Visit the links for more information <a href="https://cryptotale.org/" rel="noopener noreferrer nofollow">Website</a> | <a href="https://twitter.com/cryptotalemedia" rel="noopener noreferrer nofollow">Twitter </a>| <a href="https://t.me/cryptotale_news" rel="noopener noreferrer nofollow">Telegram </a>| <a href="https://www.instagram.com/cryptotalenews/" rel="noopener noreferrer nofollow">Instagram </a>|

Robinhood Settles for $3.9 Million in Crypto Withdrawal Case

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