On Wednesday afternoon, commission-free brokerage firm Robinhood reported higher than expected earnings for the first quarter.
Prior to this, the company’s cryptocurrency branch, Robinhood Crypto, sparked controversy when it received a Wells Notice from the US Securities and Exchange Commission.
According to Robinhood, the SEC has made a preliminary decision to take action against the crypto branch for alleged securities violations. The company had previously announced that it had received a subpoena from the SEC for an investigation into its cryptocurrency listings.
In March, Robinhood launched its cryptocurrency wallet for Android users, following the global launch of Robinhood Wallet for iOS users a year ago.
This rollout seems to have had a positive impact on Robinhood’s financial performance. Comparing year-on-year, transaction-based revenues increased by 59% to $329 million.
