TALLAHASSEE, Fla. — Florida Attorney General James Uthmeier has launched an official investigation into Robinhood Crypto, LLC, accusing the company of potentially violating Florida’s Deceptive and Unfair Trade Practices Act. The probe centers around claims that Robinhood misled users by promoting its platform as the cheapest way to buy and sell cryptocurrency.
According to Uthmeier, there is evidence that contradicts Robinhood’s marketing claims, suggesting that users may actually be paying more in hidden costs compared to other crypto trading platforms. Robinhood has advertised that customers “get the most crypto for your money” and “trade crypto at the lowest cost on average.” However, the company’s revenue model—based on “payment for order flow” (PFOF)—may result in less favorable pricing for users. Under this structure, Robinhood routes user trades to third-party firms that compensate Robinhood for the order, which critics say can reduce transparency and increase transaction costs.
“Crypto is a vital component of Florida’s financial future, and President Trump’s efforts to advance the crypto market will make America stronger and wealthier,” Uthmeier said in a statement. “When consumers buy and sell crypto assets, they deserve transparency in their transactions. Robinhood has long claimed to be the best bargain, but we believe those representations were deceptive.”
As part of the investigation, the Attorney General’s Office has issued a subpoena to Robinhood Crypto requesting a wide range of internal documents. The request includes marketing materials, employee rosters, fee disclosures, pricing strategies, and internal communications related to crypto trading costs. The state is also seeking data on the number of Florida users in 2024 and the details of their crypto transactions.
Robinhood Crypto has until July 31, 2025, to comply with the subpoena.
“Our disclosures are best-in-class — We disclose pricing information to customers during the lifecycle of a trade that clearly outlines the spread or the fees associated with the transaction and the revenue Robinhood receives. We are proud to be a place where customers can trade crypto at the lowest cost on average.” – Lucas Moskowitz, General Counsel, Robinhood Markets, Inc.
The investigation highlights growing scrutiny of trading platforms that have risen in popularity amid the crypto boom, especially those that market themselves as low-cost alternatives while using complex revenue models that may obscure true costs for consumers.
