Robinhood Crypto has seen a significant outflow of Dogecoin (DOGE) after the company received a Wells Notice from the U.S. Securities and Exchange Commission (SEC). Data from blockchain-tracking platform Bitcoinsensus shows that 164 million DOGE, worth $25 million, was transferred out of Robinhood following the notice. A Wells Notice is a warning that legal action will be taken against an entity, although it does not imply any wrongdoing. Robinhood received its notice on May 6th.

Crypto attorney Jake Chervinsky criticized the SEC for abusing its power by issuing Wells Notices as a scare tactic. He questioned whether the SEC would actually bring as many enforcement actions as it has sent Wells Notices, suggesting that the agency may be using the process to gather information and intimidate companies. However, Robinhood CEO Vlad Tenev publicly stated that the company would challenge the SEC in court if necessary, aiming to defend its crypto business and establish regulatory clarity in the United States.

Despite the news of the transfer, DOGE’s price has been relatively unaffected, trading at $0.149 at the time of writing, with a slight increase in the last 24 hours.