Robinhood (Nasdaq: HOOD) is going through an investigation by Florida’s prime prosecutor for claiming that it presents crypto buying and selling “on the lowest price on common.” The state cop can be issuing a subpoena to the buying and selling platform to uncover inner paperwork.
“The Least Costly Solution to Buy Crypto”
Based on Florida’s Lawyer Normal, James Uthmeier, Robinhood’s crypto unit falsely promoted its platform as “the least costly option to buy crypto—when there may be proof to counsel that isn’t true.”
The prosecutor acknowledged that Robinhood Crypto is allegedly violating the state’s Misleading and Unfair Practices Act.
James Uthmeier, Florida’s Lawyer Normal
“When customers purchase and promote crypto property, they deserve transparency of their transactions,” stated Lawyer Normal James Uthmeier. “Robinhood has lengthy claimed to be the perfect cut price, however we imagine these representations had been misleading.”
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The authority is questioning Robinhood’s payment-for-order-flow (PFOF) mannequin, which it additionally makes use of to execute crypto trades. As a substitute of charging a fee, the corporate earns income by routing buyer trades to third-party companies in alternate for cost.
“There may be proof that buying and selling on Robinhood is definitely dearer than buying and selling on competing platforms as a consequence of its PFOF construction versus opponents providing all-in buying and selling prices,” the prosecutor’s workplace acknowledged.
Crypto Is a Key Income Driver
Though Robinhood grew to become fashionable for commission-free inventory buying and selling, crypto has turn out to be one among its most important sources of revenue. Income from crypto has even overtaken its earnings from choices buying and selling, which was its prime earner for years.
Nonetheless, within the first quarter of 2025, income from crypto dropped to $252 million, about 30 per cent decrease than the earlier quarter. The corporate is now contemplating lowering its dependence on crypto as buying and selling volumes fluctuate.
The platform just lately launched tokenised shares for its customers in Europe. That transfer, nonetheless, stirred controversy because the European Union opened an investigation into the construction of tokenised shares of a number of non-public companies provided on the platform.
Robinhood (Nasdaq: HOOD) is going through an investigation by Florida’s prime prosecutor for claiming that it presents crypto buying and selling “on the lowest price on common.” The state cop can be issuing a subpoena to the buying and selling platform to uncover inner paperwork.
“The Least Costly Solution to Buy Crypto”
Based on Florida’s Lawyer Normal, James Uthmeier, Robinhood’s crypto unit falsely promoted its platform as “the least costly option to buy crypto—when there may be proof to counsel that isn’t true.”
The prosecutor acknowledged that Robinhood Crypto is allegedly violating the state’s Misleading and Unfair Practices Act.
James Uthmeier, Florida’s Lawyer Normal
“When customers purchase and promote crypto property, they deserve transparency of their transactions,” stated Lawyer Normal James Uthmeier. “Robinhood has lengthy claimed to be the perfect cut price, however we imagine these representations had been misleading.”
You might also like: Tokenised Shares Are Right here, however Do They Actually Convey Added Worth over CFDs?
The authority is questioning Robinhood’s payment-for-order-flow (PFOF) mannequin, which it additionally makes use of to execute crypto trades. As a substitute of charging a fee, the corporate earns income by routing buyer trades to third-party companies in alternate for cost.
“There may be proof that buying and selling on Robinhood is definitely dearer than buying and selling on competing platforms as a consequence of its PFOF construction versus opponents providing all-in buying and selling prices,” the prosecutor’s workplace acknowledged.
Crypto Is a Key Income Driver
Though Robinhood grew to become fashionable for commission-free inventory buying and selling, crypto has turn out to be one among its most important sources of revenue. Income from crypto has even overtaken its earnings from choices buying and selling, which was its prime earner for years.
Nonetheless, within the first quarter of 2025, income from crypto dropped to $252 million, about 30 per cent decrease than the earlier quarter. The corporate is now contemplating lowering its dependence on crypto as buying and selling volumes fluctuate.
The platform just lately launched tokenised shares for its customers in Europe. That transfer, nonetheless, stirred controversy because the European Union opened an investigation into the construction of tokenised shares of a number of non-public companies provided on the platform.
