Robinhood Allegedly Holds Fifth Largest Ethereum Wallet Globally
Arkham Invest recently discovered that Robinhood allegedly has the fifth largest Ethereum wallet globally. This news comes shortly after Arkham pinpointed Robinhood as the owner of the world’s third largest Bitcoin wallet.
Key Points:
- Robinhood holds approximately 1.493 million Ethereum, worth roughly $2.54 billion.
- This is the fifth largest Ethereum holdings in the world.
- Robinhood’s wallet also contains other cryptocurrencies such as Shibha, Chainlink, and Avalanche.
- A user raised the question of whether the funds belong to Robinhood or its users.
- The SEC requires crypto balances on Robinhood to be backed 1:1.
Arkham suggests that the SEC’s cryptocurrency regulations have become more rigorous, emphasizing the need for proper backing of user balances.
Proof-of-Reserve Audits Challenging for Exchanges
The SEC’s warning about proof-of-reserve audits from crypto exchanges is relevant in this context. Binance, for example, states that it is increasingly difficult to secure auditors to perform these audits due to regulatory scrutiny. Even Big Four accounting firms are unwilling to carry out proof-of-reserve audits.
Robinhood’s Recent Bitcoin Holdings
In addition to Ethereum, Arkham also revealed that Robinhood holds the position as the third largest holder of Bitcoin. A wallet screenshot displayed 122,567 Bitcoin, equating to around $3.43 billion. With Bitcoin’s current price at $27,250, this amount is worth $3.34 billion.
Hot Take:
This news further solidifies Robinhood’s position as a major player in the cryptocurrency market. However, the scrutiny surrounding proof-of-reserve audits highlights the importance of transparency and regulatory compliance in the industry.
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