Florida AG Investigates Robinhood Over Crypto Trading Claims

Florida’s Attorney General James Uthmeier has launched an investigation into Robinhood, alleging the trading platform misrepresented its cryptocurrency services as the lowest-cost option in the U.S. market. A subpoena was issued Thursday, accusing Robinhood of violating Florida’s Deceptive and Unfair Practices Act.

"Crypto is a vital component of Florida’s financial future," Uthmeier stated, emphasizing the need for transparency in crypto transactions. The probe focuses on Robinhood’s use of payment for order flow (PFOF), a practice where brokers receive fees for routing trades to specific market makers—potentially increasing costs for users.

The MOVE underscores growing regulatory scrutiny of crypto trading practices as digital assets gain mainstream traction. Robinhood’s claims of cost efficiency now face legal challenge in a state positioning itself as a crypto hub.