Robinhood, the popular cryptocurrency trading app, has announced that it will stop supporting some of the named cryptocurrencies and tokens in a recent SEC lawsuit.
The company said it will not support any products or services at this time after issuing an order from a federal judge in New York ordering Robinhood to stop trading six cryptocurrencies and tokens. The court also asked Robinhood to provide identifying information about users who purchased these digital assets on its platform.
Robinhood said in a statement: We are monitoring this matter closely and will continue to monitor developments.
Robinhood was sued by the SEC last week for violating securities laws by allowing customers to trade without verifying their identity before buying or selling digital currency. Additionally, the agency has accused the platform of encouraging traders to buy and sell cryptocurrencies through its mobile app, which violates federal law.
The company responded by saying that it has never been charged with violating securities laws or encouraging illegal activity on its platform. He added that he has removed several cryptocurrencies from his platform as they are no longer available on major exchanges like Coinbase or Gemini.