Massachusetts plans to sue Robinhood for alleged violation of state laws and regulations not related to crypto.
Massachusetts securities regulators are reportedly preparing to file a complaint against a major cryptocurrency-friendly trading platform, Robinhood.
According to a Wednesday report by the Wall Street Journal, Massachusetts regulators alleged that Robinhood's marketing illegally targeted inexperienced investors.
According to a final draft of a 20-page administrative complaint reviewed by the WSJ, the enforcement arm of the Massachusetts Securities Division said that Robinhood exposed Massachusetts investors to “unnecessary trading risks” by “falling far short of the fiduciary standard.” The authorities expect to file the complaint on Wednesday, the report notes.
According to the WSJ, the complaint came from the office of William Galvin, the secretary of the Commonwealth of Massachusetts.