Robinhood legal chief Dan Gallagher’s life just got harder. Over the weekend, the company disclosed in an 8-K that it received a “Wells Notice” from the U.S. Securities and Exchange Commission, indicating that it is preparing to sue Robinhood over its cryptocurrency unit.
The notice said staff made a “preliminary determination” to recommend that the commission file an enforcement action against Robinhood Crypto for violating securities laws. This comes after Robinhood was hit with investigatory subpoenas earlier this year over its cryptocurrency listings and platform operations.