Robinhood has postponed its IPO plans due to an ongoing review of its cryptocurrency business by the US financial regulator SEC.
June 25, 2021, | AtoZ Markets – Fintech company Robinhood is reportedly struggling to move forward with its initial public offering (IPO) due to an ongoing review from securities regulators. This is due to the fact that the US Securities and Exchange Commission (SEC) initiated an audit of its cryptocurrency division, Bloomberg reports this citing sources close to the company.
Robinhood IPO postponed to when?
Initially, Robinhood planned to conduct an IPO in June, but then the launch was postponed to July several weeks ago. Sources are claiming that the firm wanted to time its offering to when people return from the July 4 holiday. However, sources say the SEC scrutiny could disrupt Robinhood’s plans.
Robinhood has not officially commented on the possible timing of the IPO.
As AtoZ Markets reported, the California-based company filed for an IPO back in March this year.
Launched three years ago, the app supports trading Bitcoin, Bitcoin Cash, Bitcoin SV, Dogecoin, Ethereum, Ethereum Classic, and Litecoin. In the first quarter, the audience of Robinhood users grew 5.6 times.
Recall that in the past, the platform has faced claims from regulators regarding disruptions in work and marketing. In March, Robinhood estimated the settlement of the conflict with FINRA at $26.6 million.
The company also found itself at the epicenter of the scandal surrounding GameStop stocks, Dogecoin, and Reddit traders. Its co-founder and CEO Vlad Tenev had to testify at a hearing in the US Congress.
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