Robinhood (Nasdaq: HOOD) is dealing with an investigation by Florida’s high prosecutor for claiming that it gives crypto buying and selling “on the lowest price on common.” The state cop can also be issuing a subpoena to the buying and selling platform to uncover inside paperwork.
“The Least Costly Method to Buy Crypto”
In line with Florida’s Lawyer Basic, James Uthmeier, Robinhood’s crypto unit falsely promoted its platform as “the least costly approach 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 Basic
“When customers purchase and promote crypto property, they deserve transparency of their transactions,” stated Lawyer Basic James Uthmeier. “Robinhood has lengthy claimed to be one of the best 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 an alternative of charging a fee, the corporate earns income by routing buyer trades to third-party companies in alternate for cost.
“There’s proof that buying and selling on Robinhood is definitely costlier than buying and selling on competing platforms as a result of its PFOF construction versus rivals providing all-in buying and selling prices,” the prosecutor’s workplace acknowledged.
Crypto Is a Key Income Driver
Though Robinhood turned in style for commission-free inventory buying and selling, crypto has change into one in every of its major sources of earnings. Income from crypto has even overtaken its earnings from choices buying and selling, which was its high earner for years.
Nevertheless, 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 decreasing its dependence on crypto as buying and selling volumes fluctuate.
The platform not too long ago 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 personal companies provided on the platform.
Robinhood (Nasdaq: HOOD) is dealing with an investigation by Florida’s high prosecutor for claiming that it gives crypto buying and selling “on the lowest price on common.” The state cop can also be issuing a subpoena to the buying and selling platform to uncover inside paperwork.
“The Least Costly Method to Buy Crypto”
In line with Florida’s Lawyer Basic, James Uthmeier, Robinhood’s crypto unit falsely promoted its platform as “the least costly approach 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 Basic
“When customers purchase and promote crypto property, they deserve transparency of their transactions,” stated Lawyer Basic James Uthmeier. “Robinhood has lengthy claimed to be one of the best cut price, however we imagine these representations had been misleading.”
You may additionally 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 an alternative of charging a fee, the corporate earns income by routing buyer trades to third-party companies in alternate for cost.
“There’s proof that buying and selling on Robinhood is definitely costlier than buying and selling on competing platforms as a result of its PFOF construction versus rivals providing all-in buying and selling prices,” the prosecutor’s workplace acknowledged.
Crypto Is a Key Income Driver
Though Robinhood turned in style for commission-free inventory buying and selling, crypto has change into one in every of its major sources of earnings. Income from crypto has even overtaken its earnings from choices buying and selling, which was its high earner for years.
Nevertheless, 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 decreasing its dependence on crypto as buying and selling volumes fluctuate.
The platform not too long ago 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 personal companies provided on the platform.
