Florida AG probes Robinhood Crypto for allegedly misleading users on low trading costs
Quick Take
- Robinhood Crypto is under investigation in Florida for allegedly misrepresenting itself as the “least expensive way to purchase crypto.”
- Florida Attorney General James Uthmeier said Robinhood’s cost-related claims were “deceptive” and potentially misleading to consumers.
Robinhood Crypto LLC, the cryptocurrency arm of California-based Robinhood Markets, is now under investigation by Florida authorities, with the state's attorney general accusing the firm of "falsely promoting" its platform.
In a statement released Thursday, Florida's attorney general's office said Robinhood Crypto claimed to be the "least expensive way to purchase crypto," which authorities said there is no evidence to support.
"Robinhood has long claimed to be the best bargain, but we believe those representations were deceptive," said Attorney General James Uthmeier in the statement, adding that Robinhood allegedly is breaking Florida's Deceptive and Unfair Practices Act.
"Crypto is a vital component of Florida's financial future, and President Trump's efforts to advance the crypto market will make America stronger and wealthier," Uthmeier added. "When consumers buy and sell crypto assets, they deserve transparency in their transactions."
The attorney general’s office also issued a subpoena to Robinhood, seeking internal documents — including any that might support its claim that users "trade crypto at the lowest cost on average."
The Block has reached out to Robinhood for comment.
Robinhood operates as a commission-free trading platform for cryptocurrencies and stocks, earning revenue by directing customer orders to third-party market makers who pay for this order flow (PFOF). While the platform attracts users by advertising "lowest cost on average" trading and promising "the most crypto for your money," evidence suggests customers may actually pay more than on competing platforms, the authorities said.
Shares of Robinhood Markets closed up 4.4% at $98.7 on the Nasdaq on Thursday, according to Yahoo Finance data.
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