Robinhood and Leap Crypto now not in enterprise collectively amid the latter’s U.S. exit
Robinhod, the net brokerage greatest recognized for its function within the 2021 meme-stock craze, and Leap Crypto, one of many trade’s most well-known market makers, are reportedly now not in enterprise collectively.
On-chain information means that the 2 stopped their partnership in early July, based on CoinDesk, which spoke with a supply conversant in Robinhood and Leap Crypto to verify the cut up. Market makers present liquidity, or a keen commerce accomplice, for these shopping for and promoting shares or cryptocurrencies on exchanges.
A spokesperson for Robinhood declined to touch upon the report. Leap Crypto didn’t instantly reply to a request for remark when contacted by Fortune.
The cut up between Robinhood, which permits customers to purchase and promote greater than 10 cryptocurrencies on its platform, and Leap Crypto is only one of a number of current strikes from the net brokerage to distance itself from digital belongings and crypto firms focused in a current flurry of lawsuits from the Securities and Alternate Fee.
In June, the SEC sued Binance after which Coinbase in blockbuster lawsuits in opposition to two of the biggest crypto exchanges on this planet. The SEC contends that each exchanges supply a listing of cryptocurrencies deemed by the company as unregistered securities. The SEC singled out a few of the largest cryptocurrencies by market capitalization, together with Polygon (MATIC), Cardano (ADA), and Solana (SOL).
In response, Robinhood delisted MATIC, ADA, and SOL, a transfer that quite a few different legacy fintech companies replicated, together with eToro and Revolut.
In Could, Leap Crypto was reported to be pulling again from the U.S. amid the federal government’s crackdown on crypto. Lower than per week later, the company alleged in court docket filings that the agency made greater than $1 billion in Could 2021 when the supposedly algorithmic stablecoin TerraUSD depegged from the U.S. greenback and Leap Crypto swooped in to again the token.
Do Kwon, the founding father of TerraUSD, has since acquired an SEC lawsuit and indictment kind the Justice Division after his stablecoin collapsed in 2022.
