# Robinhood Settles with California DOJ Over Crypto Withdrawal Issues

*Author: David Christopher*
*Published: Sep 5, 2024*
*Source: https://www.bankless.com/robinhood-settles-with-california-doj-over-crypto-withdrawal-issues*

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Stock and crypto trading company Robinhood has agreed to pay a $3.9 million [settlement](https://oag.ca.gov/news/press-releases/attorney-general-bonta-secures-39-million-settlement-cryptocurrency-company) to the California Department of Justice over traders' inability to move purchased cryptocurrencies off of the platform prior to 2022.

### What’s the scoop?
- **Customer Impact: **The settlement addresses the grievances of users who could not withdraw their [crypto during 2018-2022](https://www.theblock.co/post/314828/robinhood-to-settle-3-9-million-penalty-with-california-doj-over-past-crypto-withdrawal-restrictions), and had to sell it back to Robinhood to exit the platform.
- **Withdrawal Access and Custody Clarity:** Robinhood must guarantee customers can withdraw crypto to external wallets and clearly disclose that it holds custody of assets and may delay settlements during network security concerns.
- **DOJ’s Stance: **The California DOJ’s action is part of broader scrutiny aimed at crypto platforms, focusing on transparency and user rights.

### Bankless Take:
Robinhood’s settlement comes after the company has taken steps to double down on crypto by acquiring the [oldest running crypto exchange, Bitstamp](https://www.bankless.com/robinhood-doubles-down-on-crypto-with-bitstamp-acquisition). There still may be more legal issues ahead tied to the crypto unit after Robinhood received a Wells Notice from the SEC this past May.

[Robinhood Brings Solana Support to its Wallet on BanklessYou still can’t buy SOL on Robinhood, but you can send it in its Robinhood Wallet app.![](https://www.bankless.com/assets/img/favicon/apple-touch-icon.png)BanklessJack Inabinet![](https://storage.ghost.io/c/e4/b7/e4b77544-5a37-4f0b-8824-8440aa348476/content/images/2024/08/lu.ma._green_feather_182a28f7-6be6-4479-8ffe-0232952816db.webp)](https://www.bankless.com/robinhood-brings-solana-support-to-its-wallet)
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