Tens of millions of dollars worth of meme asset Dogecoin (DOGE) has been leaked from Robinhood Crypto after the company received a Wells Notice from the U.S. Securities and Exchange Commission (SEC).
New data from blockchain tracking platform Bitcoinsensus reveal 164 million DOGE worth $25 million was transferred from Robinhood after the company's crypto division received notice that regulators were taking enforcement action.
A well notice does not indicate any wrongdoing, but is a warning from the SEC that legal action will be taken against a company. Robinhood received the notice on May 6th.
Earlier this week, cryptocurrency lawyer Jake Cherbinski said the SEC was abusing its power and issuing Wells notices as an intimidation tactic.
“If the SEC took as many enforcement actions as it sent Wells notices, it would be a serious violation of both the law and Congressional mandate. You're getting unfettered discovery and blackmailing a good American company.”
However, Robinhood CEO Vlad Tenev said on social media after the company received the notice that it plans to challenge the SEC in court if the situation arises.
“While we strive to maintain positive and productive relationships with regulators, we will use our resources to challenge this matter in court and defend our crypto business, as appropriate, and to protect the U.S. Our goal is to establish regulatory clarity for our customers.”
The news of the transfer had minimal impact on DOGE, as the digital asset was trading at $0.149 at the time of writing, with only modest price increases over the past 24 hours.
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Disclaimer: The opinions expressed on The Daily Hodl do not constitute investment advice. Investors should perform due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that transfers and transactions are made at your own risk and you are responsible for any losses you may incur. The Daily Hodl does not recommend buying or selling any cryptocurrencies or digital assets. The Daily Hodl is also not an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Golden Dayz
