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TNB Tech Minute: SEC Prepares to Sue Robinhood’s Crypto Unit – Tech News Briefing
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Alex Ossola: Here’s your TNB Tech Minute for Monday, May 6. I’m Alex Ossola for the Wall Street Journal. The Securities and Exchange Commission is preparing to sue Robinhood’s crypto unit. Robinhood revealed that its crypto unit received a so-called Wells Notice from the SEC over the weekend. It said the staff had made a “Preliminary Determination to Recommend Enforcement Action against the Unit for Alleged Violations of Securities Laws.” The notice is not a definitive indication that the SEC will sue Robinhood. Robinhood said it was disappointed by the notice, saying it has been trying to work with the SEC in good faith for years to ensure its crypto business is compliant with securities laws. An SEC spokesperson declined to comment. We’re exclusively reporting that Senator Elizabeth Warren has been pushing the Pentagon to address Russian troops’ illicit use of Starlink internet terminals in Ukraine. In a letter to Defense Secretary Lloyd Austin, Warren called the issue a “serious national security threat to the United States and its allies.” In her letter, Warren cited a Wall Street Journal investigation that showed how a black market of middlemen from the Middle East and elsewhere funneled compact satellite dishes into the hands of America’s adversaries and accused war criminals on the battlefields of Ukraine and Sudan. And Synopsys is selling its Software Integrity Group business to Clearlake Capital Group and Francisco Partners, in a deal with a total value of up to $2.1 billion. The current Software Integrity Group management team is expected to lead the new, independent private company after the transaction closes. The name of the new standalone entity will be announced at a later date. The transaction is currently expected to close in the second half of 2024. For a deeper dive into what’s happening in the tech sector, check out Tuesday’s Tech News Briefing podcast.