Tens of millions of dollars in meme assets Dogecoin (DOGE) have left Robinhood Crypto after the company received a Wells Notice from the US Securities and Exchange Commission (SEC).
New data from blockchain tracking platform Bitcoinsensus reveals that 164 million DOGE worth $25 million was transferred out of Robinhood after the company’s crypto arm received notice that the regulatory agency would take enforcement action against the company.
A Well Notice is a warning from the SEC informing an entity that legal action will be taken against them, although it is not indicative of any wrongdoing. Robinhood received the notice on May 6.
Earlier this week, crypto lawyer Jake Chervinsky said the SEC was abusing its power and issuing Wells Notices as a scare tactic.
“If the SEC takes as many enforcement actions as it has issued Wells Notices, it will be in flagrant violation of both the law and Congress’ mandate. If not, the Wells process is clearly being abused to obtain unfettered discovery and terrorize leading American companies. Which one is it?”
However, Robinhood CEO Vlad Tenev took to social media after the company received the notice and said he would challenge the SEC in court if it came to it.
“While we strive to maintain positive and productive relationships with our regulators, if necessary, we will use our resources to litigate this matter in court, with the intent to both defend our crypto business and provide regulatory clarity create in the United States for the benefit of our customers.”
News of the transfer had minimal impact on DOGE, as the digital asset is trading at $0.149 at the time of writing, up fractionally over the past 24 hours.
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Featured image: Shutterstock/Golden Dayz