Robinhood Crypto has seen a significant outflow of Dogecoin (DOGE) worth tens of millions of dollars after receiving a Wells Notice from the US Securities and Exchange Commission (SEC). According to data from blockchain-tracking platform Bitcoinsensus, approximately 164 million DOGE, equivalent to $25 million, were transferred out of Robinhood following the firm’s receipt of the regulatory agency’s enforcement action notice. A Wells Notice is a warning issued by the SEC to inform an entity of impending legal action, although it does not imply any wrongdoing. Robinhood received its notice on May 6th. Crypto attorney Jake Chervinsky criticized the SEC’s use of Wells Notices, suggesting that they are being employed as scare tactics. Robinhood CEO Vlad Tenev, on the other hand, expressed his intention to challenge the SEC in court if necessary, stating that the company would defend its crypto business and seek regulatory clarity for the benefit of its customers. The news of the transfer had minimal impact on DOGE’s price, which is currently trading at $0.149.
