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 value on common.” The state cop can also be issuing a subpoena to the buying and selling platform to uncover inner paperwork.
“The Least Costly Approach to Buy Crypto”
In response to Florida’s Lawyer Normal, James Uthmeier, Robinhood’s crypto unit falsely promoted its platform as “the least costly technique to buy crypto—when there’s proof to counsel that’s not 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 shoppers purchase and promote crypto belongings, they deserve transparency of their transactions,” stated Lawyer Normal James Uthmeier. “Robinhood has lengthy claimed to be the most effective 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 an alternative of charging a fee, the corporate earns income by routing buyer trades to third-party companies in change for fee.
“There may be proof that buying and selling on Robinhood is definitely costlier than buying and selling on competing platforms resulting from 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 turned in style for commission-free inventory buying and selling, crypto has develop into certainly one of its 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 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 because the European Union opened an investigation into the construction of tokenised shares of a number of non-public companies supplied 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 value on common.” The state cop can also be issuing a subpoena to the buying and selling platform to uncover inner paperwork.
“The Least Costly Approach to Buy Crypto”
In response to Florida’s Lawyer Normal, James Uthmeier, Robinhood’s crypto unit falsely promoted its platform as “the least costly technique to buy crypto—when there’s proof to counsel that’s not 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 shoppers purchase and promote crypto belongings, they deserve transparency of their transactions,” stated Lawyer Normal James Uthmeier. “Robinhood has lengthy claimed to be the most effective discount, however we consider these representations had 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 an alternative of charging a fee, the corporate earns income by routing buyer trades to third-party companies in change for fee.
“There may be proof that buying and selling on Robinhood is definitely costlier than buying and selling on competing platforms resulting from 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 turned in style for commission-free inventory buying and selling, crypto has develop into certainly one of its 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 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 because the European Union opened an investigation into the construction of tokenised shares of a number of non-public companies supplied on the platform.
