Odaily News The California Department of Justice has fined Robinhood Crypto LLC, the cryptocurrency trading subsidiary of Robinhood, $3.9 million for its past conduct. The company prohibited users from withdrawing purchased cryptocurrencies from 2018 to 2022. Although Robinhood abandoned this policy in 2022, the California Department of Justice still investigated it. The investigation considers cryptocurrencies traded through Robinhood as commodities and believes that the company failed to give users custody of their personal assets, violating California Commodity Law. Under the settlement agreement, Robinhood must allow users to withdraw cryptocurrency from the app and update disclosures about its custody practices. Robinhood Crypto also faces an independent review by the U.S. Securities and Exchange Commission, which said in May that it was preparing to file a lawsuit against the company for violating federal securities laws. (CoinDesk)