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Robinhood Under Investigation in Florida Over Alleged Deceptive Crypto Pricing

Robinhood Under Investigation in Florida Over Alleged Deceptive Crypto Pricing

Published:
2025-07-11 15:27:02
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BTCCSquare news:

Florida Attorney General James Uthmeier has launched an investigation into Robinhood Crypto, alleging the platform misled consumers by falsely advertising itself as the least expensive way to trade digital assets. Evidence suggests users may pay higher effective costs compared to competitors, despite claims of commission-free trading.

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. The practice, also used in equities trading, previously resulted in a $65 million SEC settlement in 2020.

'Crypto represents Florida's financial future,' Uthmeier stated, aligning the action with former President Trump's pro-crypto stance. The investigation underscores growing regulatory scrutiny of retail trading platforms as digital assets gain mainstream adoption.

|Square

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