Robinhood Crypto has seen a significant outflow of Dogecoin (DOGE) following the receipt of a Wells Notice from the US Securities and Exchange Commission (SEC). According to data from blockchain-tracking platform Bitcoinsensus, approximately 164 million DOGE, worth $25 million, was transferred out of Robinhood after the firm was informed of the SEC’s intention to take enforcement actions against it. A Wells Notice serves as a warning, indicating that legal action will be pursued, but it does not imply any wrongdoing on the part of the recipient. Robinhood received its notice on May 6th.
Crypto attorney Jake Chervinsky criticized the SEC for abusing its power and using Wells Notices as scare tactics. He questioned whether the SEC would follow through with enforcement actions, as sending numerous Wells Notices without taking action would violate the law and the agency’s mandate, or if it was simply using the Wells process to obtain free discovery and intimidate reputable US companies.
In response to the notice, Robinhood CEO Vlad Tenev stated that the firm would challenge the SEC in court if necessary. Tenev expressed his commitment to maintaining positive relationships with regulators but emphasized that Robinhood would use its resources to contest the matter and seek regulatory clarity for the benefit of its customers.
The news of the DOGE transfer had a minimal impact on the digital asset’s price, which was trading at $0.149 at the time of writing, representing a slight increase in the past 24 hours.
Please note that this article is for informational purposes only and should not be considered as investment advice. Investors should conduct their own research and exercise caution when making high-risk investments in cryptocurrencies or digital assets. Transfers and trades are conducted at the individual’s own risk, and any losses incurred are the responsibility of the investor. The Daily Hodl does not endorse or recommend the buying or selling of any cryptocurrencies or digital assets, nor does it provide investment advice.