Robinhood (Nasdaq: HOOD) is going through an investigation by Florida’s high prosecutor for claiming that it presents 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 Approach to Buy Crypto”
In line with Florida’s Lawyer 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 counsel 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 Lawyer Normal
“When shoppers purchase and promote crypto belongings, they deserve transparency of their transactions,” mentioned Lawyer Normal James Uthmeier. “Robinhood has lengthy claimed to be one of the 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 trade for fee.
“There may be proof that buying and selling on Robinhood is definitely dearer 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 said.
Crypto Is a Key Income Driver
Though Robinhood grew to become well-liked for commission-free inventory buying and selling, crypto has turn out to be 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.
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 just 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 corporations supplied on the platform.
Robinhood (Nasdaq: HOOD) is going through an investigation by Florida’s high prosecutor for claiming that it presents 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 Approach to Buy Crypto”
In line with Florida’s Lawyer 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 counsel 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 Lawyer Normal
“When shoppers purchase and promote crypto belongings, they deserve transparency of their transactions,” mentioned Lawyer Normal James Uthmeier. “Robinhood has lengthy claimed to be one of the best discount, however we consider these representations had been misleading.”
You may additionally 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 corporations in trade for fee.
“There may be proof that buying and selling on Robinhood is definitely dearer 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 said.
Crypto Is a Key Income Driver
Though Robinhood grew to become well-liked for commission-free inventory buying and selling, crypto has turn out to be 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.
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 just 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 corporations supplied on the platform.
