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Robinhood doubles down on crypto with deal for Bitstamp

Move comes a month after SEC notice of a potential lawsuit over the brokerage’s crypto offerings

Robinhood’s revenue from crypto trading more than tripled in the first quarter.
Robinhood’s revenue from crypto trading more than tripled in the first quarter. Photo: Amir Hamja for The Wall Street Journal

Robinhood is wading deeper into crypto with a $200m deal for Bitstamp, despite the Securities and Exchange Commission’s warning that it plans to sue the brokerage over its digital assets business. 

The deal for the crypto exchange comes a month after Robinhood disclosed that it received a so-called Wells notice that the regulator is preparing to sue the company over alleged violations of securities laws.

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