(Bloomberg) -- Robinhood Markets Inc. has been formally warned by regulators that it may face an enforcement action tied to its cryptocurrency dealings.

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The so-called Wells notice from the US Securities and Exchange Commission concerns Robinhood Crypto and its cryptocurrency listings, custody of cryptocurrencies and platform operations, the company said in a regulatory filing Monday. The agency’s staff told Robinhood that it made a “preliminary determination” to recommend that the SEC file an enforcement action.

The result could be an injunction, a cease-and-desist order, disgorgement and other penalties or limits on activities, according to the filing. The company was previously subpoenaed and has cooperated with the investigation, Robinhood said.

A Wells Notice comes gives a company time to rebut the agency’s allegations and doesn’t necessarily indicate an enforcement action will follow.

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