Asia Tech Wire (Sep 5) -- U.S. retail investment platform Robinhood has reached a $3.9 million settlement with the U.S. state of California over cryptocurrency withdrawals.

A cryptocurrency platform operated by Robinhood will pay $3.9 million to settle allegations that it failed to let customers withdraw cryptocurrencies from their accounts between 2018 and 2022, California Attorney General Rob Bonta said on Wednesday.

The California Department of Justice said that by allowing customers to buy cryptocurrencies but not letting them take personal custody of the assets, the company violated the state's commodities laws.

Robinhood neither admitted nor denied wrongdoing.

The settlement also requires the platform to allow customers to withdraw crypto assets into their wallets, and to comply with its representations about its trading and order processing practices.