Robinhood, a popular cryptocurrency and stock trading website, has appealed to the Securities and Exchange Commission in the United States to go public and generate capital through an initial public offering (IPO).
This is according to a Form S-1 registration filed with the Securities and Exchange Commission on Thursday on the company’s IPO prospectus. Robinhood has said that it wants to proceed with its first public offering (IPO) for its Class A common shares.
The crypto and stock trading platform is just waiting for clearance to list its ‘HOOD’ shares on Nasdaq and raise $100 million in its first public offering.
The platform was supposed to debut on the Nasdaq exchange last month, but it was postponed until July. It filed its IPO plans even though the Securities and Exchange Commission is investigating it for repeated outages, concerns about its options trading, and other business-related issues.
The $70 million fine imposed on Robinhood was a colossal blunder.
The US Financial Industry Regulatory Authority (FINRA) slapped Robinhood with a punishment, prompting the company to apply for an IPO. In addition, the regulators demanded that Robinhood pay a $70 million penalty for alleged systematic supervisory failings, as well as reparations to consumers who were allegedly harmed widely and severely.
The fine is the most significant monetary punishment imposed by regulators against the trading app.
They stated that they had agreed with FINRA to pay the $57 million fine, but just $4.5 million in restitution to impacted users, in the proposed IPO document presented to the SEC.
Aside from the penalties, the trading app has been sued by regulators, state agencies, and individuals for the platform’s downtime, account takeovers, and trading limitations relating to the GameStop stock scandal.
The company also stated that it expects to pay the New York State Department of Financial Services $15 million in anti-money laundering and cybersecurity fines.