Florida AG Investigates Robinhood Over Alleged Deceptive Crypto Pricing

Florida Attorney General James Uthmeier has launched an investigation into Robinhood Crypto, alleging the platform misled consumers by falsely advertising itself as the lowest-cost option for cryptocurrency trading. Evidence suggests traders may pay more on Robinhood compared to competitors.

The probe centers on Robinhood's payment for order FLOW (PFOF) model, which routes trades to market makers in exchange for revenue sharing. Critics argue this creates conflicts of interest, potentially prioritizing broker compensation over best execution for customers.

"Crypto is vital to Florida's financial future," Uthmeier stated, invoking former President Trump's pro-crypto stance. "Consumers deserve transparency when buying digital assets." The investigation follows Robinhood's 2020 $65 million settlement with U.S. regulators over similar order routing practices in equities trading.