Florida Attorney General Probes Robinhood Over Low-Cost Crypto Trading Claims

Highlights:

• Florida AG investigates Robinhood Crypto for misleading claims about low trading costs.
• Officials demand proof that Robinhood’s pricing model is fair and transparent for customers.
• SEC rules and pricing concerns prompt deeper review of Robinhood’s crypto trading model.

Florida’s Attorney General James Uthmeier has initiated an investigation into Robinhood Crypto LLC, the digital asset division of California-based Robinhood Markets, accusing the company of deceiving customers about the true costs of trading digital assets. The Florida Attorney General’s office said Thursday that Robinhood Crypto advertised itself as the cheapest way to purchase cryptocurrencies. However, authorities stated there is no proof to back up this claim. Uthmeier further alleged that the company’s actions may violate Florida’s Deceptive and Unfair Trade Practices Act.

Uthmeier added:

“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. When consumers buy and sell crypto assets, they deserve transparency in their transactions.”

Florida Targets Robinhood Over Crypto Fees and Trading Claims

Robinhood earns money through a system called payment for order flow (PFOF). In this setup, when someone places a trade, Robinhood sends that order to a third-party company, like a market maker, instead of handling it directly. These third-party firms pay Robinhood small fees, usually a fraction of a penny per share, for each order it sends their way. Florida’s attorney general claims this model could make trades more expensive for users. That’s because the third-party firms paying Robinhood need to make a profit too, so they might offer prices that aren’t as good for the customer.

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. When consumers buy and sell crypto assets, they deserve transparency in their transactions.

Robinhood has long claimed… pic.twitter.com/58acBUe9oy

— Attorney General James Uthmeier (@AGJamesUthmeier) July 10, 2025

The attorney general’s office has issued a subpoena to Robinhood, requesting internal company documents. This includes any records that could support its claim that users “trade crypto at the lowest cost on average.” According to the statement, Robinhood is required to respond by the end of July. 

Company’s Crypto Operations Face Growing Scrutiny

In December 2020, Robinhood agreed to pay a $65 million fine to the United States Securities and Exchange Commission (SEC). The company did not admit guilt but settled charges that it gave false claims. One key issue was that Robinhood said users got better trade prices than other brokers, which the SEC said was not true. This concern is similar to what Florida is now investigating in its crypto case.

The recent investigation will explore whether this system conceals trading costs, reduces fairness, or causes users to pay more in fees. Previously, the U.S. Securities and Exchange Commission introduced a new rule requiring brokerages that serve individual investors to provide clearer details on how trades are executed and priced. This includes specific disclosures about payment for order flow, as part of a broader push to improve market transparency.

Robinhood investors didn’t seem worried about Florida’s investigation. The stock went up 4.4% on Thursday, closing at $98.70 during a strong crypto market rally. It is now very close to its all-time high of $100.88. But in after-hours trading, the stock dropped a bit to $97.23, down by 1.49%.