09:50 AM EDT, 05/06/2024 (MT Newswires) -- (Updates with additional details, stock move.)

Robinhood Markets ( HOOD ) said in a filing Monday that its Robinhood Crypto LLC unit received a Wells Notice on Saturday from the staff of the US Securities and Exchange Commission stating it made a "preliminary determination" to recommend an enforcement action against it for allegedly violating Sections 15(a) and 17A of the Securities Exchange Act of 1934, as amended.

The "potential action may involve a civil injunctive action, public administrative proceeding, and/or a cease-and-desist proceeding, and may seek remedies that include an injunction, a cease-and-desist order, disgorgement, pre-judgment interest, civil money penalties, and censure, revocation, and limitations on activities," Robinhood Markets ( HOOD ) said.

Robinhood Markets ( HOOD ) also said that it previously disclosed that Robinhood Crypto had received subpoenas from the SEC linked to areas like its cryptocurrency listings and custody as well as platform operations.

Robinhood Crypto has cooperated with the probe, the company said.

Robinhood Markets ( HOOD ) shares were rising 1.9% in recent trading.

Price: 18.29, Change: +0.34, Percent Change: +1.87