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 be issuing a subpoena to the buying and selling platform to uncover inner paperwork.
“The Least Costly Method to Buy Crypto”
In response to Florida’s Lawyer Normal, James Uthmeier, Robinhood’s crypto unit falsely promoted its platform as “the least costly method to buy crypto—when there’s proof to recommend 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 property, they deserve transparency of their transactions,” stated Lawyer Normal James Uthmeier. “Robinhood has lengthy claimed to be the most effective cut price, however we imagine these representations have been misleading.”
You might also 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 corporations in trade for fee.
“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 acknowledged.
Crypto Is a Key Income Driver
Though Robinhood turned widespread for commission-free inventory buying and selling, crypto has develop into one in every of its major 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, nonetheless, stirred controversy because the European Union opened an investigation into the construction of tokenised shares of a number of personal corporations 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 value on common.” The state cop can be issuing a subpoena to the buying and selling platform to uncover inner paperwork.
“The Least Costly Method to Buy Crypto”
In response to Florida’s Lawyer Normal, James Uthmeier, Robinhood’s crypto unit falsely promoted its platform as “the least costly method to buy crypto—when there’s proof to recommend 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 property, they deserve transparency of their transactions,” stated Lawyer Normal James Uthmeier. “Robinhood has lengthy claimed to be the most effective cut price, however we imagine these representations have been misleading.”
You might also 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 corporations in trade for fee.
“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 acknowledged.
Crypto Is a Key Income Driver
Though Robinhood turned widespread for commission-free inventory buying and selling, crypto has develop into one in every of its major 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, nonetheless, stirred controversy because the European Union opened an investigation into the construction of tokenised shares of a number of personal corporations provided on the platform.
