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 be issuing a subpoena to the buying and selling platform to uncover inner paperwork.
“The Least Costly Approach to Buy Crypto”
In line with Florida’s Legal professional Normal, James Uthmeier, Robinhood’s crypto unit falsely promoted its platform as “the least costly strategy to buy crypto—when there may be proof to recommend that’s not 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 shoppers purchase and promote crypto property, 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 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 corporations in change for fee.
“There may be proof that buying and selling on Robinhood is definitely costlier than buying and selling on competing platforms as a consequence of its PFOF construction versus rivals providing all-in buying and selling prices,” the prosecutor’s workplace said.
Crypto Is a Key Income Driver
Though Robinhood grew to become widespread for commission-free inventory buying and selling, crypto has develop into one in all its fundamental sources of revenue. Income from crypto has even overtaken its earnings from choices buying and selling, which was its high 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 not too long ago launched tokenised shares for its customers in Europe. That transfer, nevertheless, stirred controversy because the European Union opened an investigation into the construction of tokenised shares of a number of non-public corporations 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 be issuing a subpoena to the buying and selling platform to uncover inner paperwork.
“The Least Costly Approach to Buy Crypto”
In line with Florida’s Legal professional Normal, James Uthmeier, Robinhood’s crypto unit falsely promoted its platform as “the least costly strategy to buy crypto—when there may be proof to recommend that’s not 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 shoppers purchase and promote crypto property, 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 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 a substitute of charging a fee, the corporate earns income by routing buyer trades to third-party corporations in change for fee.
“There may be proof that buying and selling on Robinhood is definitely costlier than buying and selling on competing platforms as a consequence of its PFOF construction versus rivals providing all-in buying and selling prices,” the prosecutor’s workplace said.
Crypto Is a Key Income Driver
Though Robinhood grew to become widespread for commission-free inventory buying and selling, crypto has develop into one in all its fundamental sources of revenue. Income from crypto has even overtaken its earnings from choices buying and selling, which was its high 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 not too long ago launched tokenised shares for its customers in Europe. That transfer, nevertheless, stirred controversy because the European Union opened an investigation into the construction of tokenised shares of a number of non-public corporations provided on the platform.
