Robinhood (Nasdaq: HOOD) is dealing with an investigation by Florida’s prime prosecutor for claiming that it gives 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 keeping with Florida’s Legal professional Common, James Uthmeier, Robinhood’s crypto unit falsely promoted its platform as “the least costly solution to buy crypto—when there may be proof to counsel that isn’t true.”
The prosecutor said that Robinhood Crypto is allegedly violating the state’s Misleading and Unfair Practices Act.
James Uthmeier, Florida’s Legal professional Common
“When customers purchase and promote crypto belongings, they deserve transparency of their transactions,” stated Legal professional Common James Uthmeier. “Robinhood has lengthy claimed to be the very 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 an alternative of charging a fee, the corporate earns income by routing buyer trades to third-party companies in change for cost.
“There may be proof that buying and selling on Robinhood is definitely dearer than buying and selling on competing platforms as a consequence 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 turned common for commission-free inventory buying and selling, crypto has turn out to be considered one of its fundamental sources of earnings. Income from crypto has even overtaken its earnings from choices buying and selling, which was its prime earner for years.
Nevertheless, 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 lowering its dependence on crypto as buying and selling volumes fluctuate.
The platform 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 non-public companies supplied on the platform.
Robinhood (Nasdaq: HOOD) is dealing with an investigation by Florida’s prime prosecutor for claiming that it gives 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 keeping with Florida’s Legal professional Common, James Uthmeier, Robinhood’s crypto unit falsely promoted its platform as “the least costly solution to buy crypto—when there may be proof to counsel that isn’t true.”
The prosecutor said that Robinhood Crypto is allegedly violating the state’s Misleading and Unfair Practices Act.
James Uthmeier, Florida’s Legal professional Common
“When customers purchase and promote crypto belongings, they deserve transparency of their transactions,” stated Legal professional Common James Uthmeier. “Robinhood has lengthy claimed to be the very best discount, however we consider these representations had 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 companies in change for cost.
“There may be proof that buying and selling on Robinhood is definitely dearer than buying and selling on competing platforms as a consequence 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 turned common for commission-free inventory buying and selling, crypto has turn out to be considered one of its fundamental sources of earnings. Income from crypto has even overtaken its earnings from choices buying and selling, which was its prime earner for years.
Nevertheless, 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 lowering its dependence on crypto as buying and selling volumes fluctuate.
The platform 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 non-public companies supplied on the platform.