TALLAHASSEE, Fla. — Florida Attorney General James Usmier has launched an official investigation of Robinhood Crypto LLC, accusing the company of potentially violating Florida’s fraudulent and unfair trade practices laws. The research centers on claims that Robinhood misinterpreted users by promoting its platform as the cheapest way to buy and sell cryptocurrency.
According to Uthmeier, there is evidence that it contradicts Robinhood’s marketing claims, suggesting that users may actually pay more at hidden costs compared to other crypto trading platforms. Robinhood advertises that customers “get the most crypto for your money” and “trade crypto at the lowest cost on average.” However, based on “Order Flow Payment” (PFOF), the company’s revenue model is lowered for users. Under this structure, Robinhood routes user transactions to third party companies and compensates Robinhood for its orders. Critics say it can reduce transparency and increase transaction costs.
“Cryptocurrency is a key component of Florida’s financial future, and President Trump’s efforts to advance the crypto market will make America stronger and more wealthy,” Usmeyer said in a statement. “When consumers buy and sell crypto assets, they deserve transparency in their transactions. Robin Hood has long been claiming that it is the best bargain, but we believe that those expressions are deceived.”
As part of the investigation, the Attorney General’s Office issued a subpoena to the Robin Hood Code, which calls for a wide range of internal documents. Requests include marketing materials, employee rosters, fee disclosure, pricing strategies, and internal communications related to crypto transaction costs. The state is also seeking data on 2024 Florida user counts and crypto transactions details.
Robinhood Crypto is compliant with the subpoena until July 31, 2025.
The study highlights the growing scrutiny of trading platforms, which are gaining popularity amid the crypto boom, particularly those selling themselves as low-cost alternatives, using complex revenue models that can obscure the true costs of consumers.
