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Investing.com -- Robinhood (NASDAQ:HOOD), the trading platform, is under investigation by Massachusetts’ top securities regulator. The investigation is focused on Robinhood’s decision to launch a prediction-markets hub. This hub allows users to place bets on the outcomes of various events, including the March Madness college basketball tournaments.
The Secretary of State of Massachusetts, Bill Galvin, expressed his concerns during an interview on Monday. He stated that Robinhood was associating a popular sports event with a brokerage account, a move he deemed as an attempt to attract investors away from sound investing. Galvin, a Democrat, is recognized as one of the nation’s most assertive state-level securities regulators.
Last week, Galvin’s office issued a subpoena to Robinhood. The subpoena requests information about how many of the company’s brokerage account users in Massachusetts have asked to trade contracts related to college sports events. This came as the men’s and women’s college basketball tournaments began.
In addition to this, the subpoena also demands copies of Robinhood’s marketing materials. It requires the company to identify every resident in the state who holds a brokerage account with them and has asked to trade contracts related to college sports events.
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