Robinhood (Nasdaq: HOOD) is going through an investigation by Florida’s prime prosecutor for claiming that it provides 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 inside paperwork.
“The Least Costly Method to Buy Crypto”
In response to Florida’s Legal professional Normal, James Uthmeier, Robinhood’s crypto unit falsely promoted its platform as “the least costly technique to buy crypto—when there’s proof to recommend that isn’t true.”
The prosecutor said that Robinhood Crypto is allegedly violating the state’s Misleading and Unfair Practices Act.
James Uthmeier, Florida’s Legal professional Normal
“When customers purchase and promote crypto belongings, they deserve transparency of their transactions,” stated Legal professional Normal James Uthmeier. “Robinhood has lengthy claimed to be the very best discount, however we consider these representations have 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 trade for cost.
“There’s proof that buying and selling on Robinhood is definitely costlier than buying and selling on competing platforms because of its PFOF construction versus opponents providing all-in buying and selling prices,” the prosecutor’s workplace said.
Crypto Is a Key Income Driver
Though Robinhood turned common for commission-free inventory buying and selling, crypto has turn into considered one of its fundamental sources of earnings. 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 decreasing its dependence on crypto as buying and selling volumes fluctuate.
The platform lately launched tokenised shares for its customers in Europe. That transfer, nevertheless, stirred controversy as 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 going through an investigation by Florida’s prime prosecutor for claiming that it provides 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 inside paperwork.
“The Least Costly Method to Buy Crypto”
In response to Florida’s Legal professional Normal, James Uthmeier, Robinhood’s crypto unit falsely promoted its platform as “the least costly technique to buy crypto—when there’s proof to recommend that isn’t true.”
The prosecutor said that Robinhood Crypto is allegedly violating the state’s Misleading and Unfair Practices Act.
James Uthmeier, Florida’s Legal professional Normal
“When customers purchase and promote crypto belongings, they deserve transparency of their transactions,” stated Legal professional Normal James Uthmeier. “Robinhood has lengthy claimed to be the very best discount, however we consider these representations have been misleading.”
You might also like: Tokenised Shares Are Right here, however Do They Actually Deliver 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 trade for cost.
“There’s proof that buying and selling on Robinhood is definitely costlier than buying and selling on competing platforms because of its PFOF construction versus opponents providing all-in buying and selling prices,” the prosecutor’s workplace said.
Crypto Is a Key Income Driver
Though Robinhood turned common for commission-free inventory buying and selling, crypto has turn into considered one of its fundamental sources of earnings. 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 decreasing its dependence on crypto as buying and selling volumes fluctuate.
The platform lately launched tokenised shares for its customers in Europe. That transfer, nevertheless, stirred controversy as the European Union opened an investigation into the construction of tokenised shares of a number of personal companies provided on the platform.
