Robinhood Faces Second Regulatory Probe Over Alleged Deceptive Crypto Marketing

Florida's Attorney General has launched an investigation into Robinhood's cryptocurrency operations, marking the second regulatory scrutiny the trading platform faces in days. The probe centers on claims that Robinhood misled users by falsely advertising its platform as the 'least expensive way to purchase crypto.'

Authorities are examining the firm's payment-for-order-flow (PFOF) model, which routes trades to third-party market makers in exchange for fees. While this enables commission-free trading, the AG's office argues it may result in inferior execution prices, ultimately costing customers more than platforms with transparent pricing.

'Robinhood has long claimed to be the best bargain, but we believe those representations were deceptive,' said Attorney General James Uthmeier. The enforcement action aligns with Florida's recognition of crypto as a vital component of its financial future.