Robinhood's cryptocurrency trading subsidiary had prevented customers from withdrawing the tokens they had purchased. While Robinhood Crypto LLC abandoned that policy in 2022, its past practice was penalized by the California government on Wednesday for $3.90 million. The California Department of Justice has launched an investigation into what Robinhood's lead attorney described as "historical practices" in the cryptocurrency business of the popular trading app between 2018 and 2022. The state's investigation specifically treats various cryptocurrencies that people can buy and sell through Robinhood as commodities. By allowing customers to buy cryptocurrencies but not giving them personal custody of the assets, the company violated California commodity laws, according to a press release from the California Department of Justice. According to the settlement agreement, Robinhood must continue to allow its customers to withdraw their cryptocurrencies from the app and update disclosures about its custody practices.