TALLAHASSEE, Fla.—Attorney General James Uthmeier has initiated an investigation into Robinhood Crypto, LLC. A subpoena has been issued to gather internal documents amid allegations that the company is violating Florida’s Deceptive and Unfair Practices Act. The allegations suggest that Robinhood Crypto falsely promoted its platform as the most cost-effective option for purchasing cryptocurrency.
“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. When consumers buy and sell crypto assets, they deserve transparency in their transactions,” said Attorney General James Uthmeier. “Robinhood has long claimed to be the best bargain, but we believe those representations were deceptive.”
Robinhood operates as a cryptocurrency and stock trading platform. It does not charge commission fees; instead, it earns revenue by routing trades to third-party firms through a process known as payment for order flow (PFOF).
The platform claims to offer the “lowest cost on average” for trading cryptocurrency and promises users “the most crypto for your money.” However, evidence suggests that due to its PFOF structure, trading on Robinhood may be more expensive than on competing platforms that provide all-in trading costs.
To assess whether these practices exploit Florida investors, Attorney General Uthmeier has requested several documents from Robinhood. These include organizational charts, employee roles related to marketing and pricing strategies, advertisements promoting low-cost trades, disclosures of user fees and commissions, training materials about discussing costs with users, pricing determinations for rebates or PFOF practices with market makers, agreements with entities regarding PFOF or transaction rebates, comparative pricing analyses of competitors’ costs for trading cryptocurrency, policies on PFOF practices in crypto trades, data sale policies relating to users’ trading activities, communications with Florida users about trade costs or fees on Robinhood’s platform in 2024.
Robinhood Crypto must comply with the subpoena by July 31, 2025.
