Tens of millions of dollars worth of the meme asset Dogecoin (DOGE) has been transferred out of Robinhood Crypto after the firm received a Wells Notice from the U.S. Securities and Exchange Commission (SEC).
DOGE Worth $25 Million Transferred Out of Robinhood Crypto After SEC Wells Notice
New data from blockchain-tracking platform Bitcoinsensus reveals that 164 million DOGE worth $25 million was transferred out of Robinhood after the firm’s crypto branch received notice that the regulatory agency would be taking enforcement actions against it. A Wells Notice is a warning given by the SEC informing an entity that legal action is going to be taken against them, though it is not an indication of any wrongdoing. Robinhood received its notice on May 6th.
Crypto attorney Jake Chervinsky criticized the SEC, stating that it was abusing its power and issuing Wells Notices as a scare tactic.
«If the SEC brings as many enforcement actions as it has sent Wells Notices, it will be in flagrant violation of both the law and its Congressional mandate. If not, it’s clearly abusing the Wells process to get free discovery and terrorize upstanding US companies. Which is it?»
In response to the notice, Robinhood CEO Vlad Tenev expressed his intention to challenge the SEC in court if necessary. He stated on social media:
«While we strive to maintain positive and productive relationships with our regulators, if necessary we will use our resources to contest this matter in the courts, with the intent of both defending our crypto business and establishing regulatory clarity in the United States for the benefit of our customers.»
The transfer of Dogecoin out of Robinhood had minimal impact on the cryptocurrency’s price, as it is currently trading at $0.149, showing a slight increase in the last 24 hours.
Summary:
- Tens of millions of dollars worth of Dogecoin has been transferred out of Robinhood Crypto after the firm received a Wells Notice from the SEC.
- 164 million DOGE worth $25 million was transferred out of Robinhood.
- A Wells Notice is a warning of impending legal action from the SEC.
- Crypto attorney Jake Chervinsky accused the SEC of abusing its power.
- Robinhood CEO Vlad Tenev stated the firm would challenge the SEC in court if necessary.
- The transfer had minimal impact on the price of Dogecoin.