06:31 AM EDT, 09/05/2024 (MT Newswires) -- (Updates with Robinhood's comment in the last paragraph.)

California Attorney General Rob Bonta said Wednesday it has reached a $3.9 million settlement with Robinhood's (HOOD) cryptocurrency division for not letting customers withdraw their digital assets from their accounts from 2018 to 2022, and for not disclosing details of its trading and order handling arrangements.

The settlement resolves the attorney general's investigation into Robinhood's violation of the California Commodities Law.

The government agency said the investigation was prompted by consumer complaints.

The attorney general alleged Robinhood misled customers by claiming it would connect them to multiple trading venues, which it did not always do.

In addition to the penalty, the attorney general said the company must let customers withdraw their cryptocurrency assets to their own wallets and clarify its rules on its trading and order-handling practices.

Robinhood said in an email to MT Newswires that the company is pleased to put the matter behind it. "The settlement fully resolves the Attorney General's concerns related to historical practices, and we look forward to continuing to make crypto more accessible and affordable to everyone," said Lucas Moskowitz, the company's general counsel.