Robinhood Faces Florida Probe Over Alleged Misleading Crypto Pricing Claims

Robinhood Crypto is under investigation by Florida’s Attorney General for allegedly misleading users by advertising itself as the cheapest platform for crypto trading. Attorney General James Uthmeier stated Thursday that his office has evidence suggesting users may actually pay more on Robinhood compared to rival platforms.

The investigation focuses on Robinhood’s controversial “payment for order flow” (PFOF) model, where the company earns revenue by routing user trades through market makers in exchange for a fee. Critics argue this creates a conflict of interest, potentially prioritizing profits over optimal pricing for users. The practice, also used in Robinhood’s stock trading, has faced global scrutiny and is already banned in the UK, with an EU ban set to begin next year.

Robinhood previously paid $65 million in 2020 to settle U.S. SEC charges over misrepresenting trade execution quality, without admitting wrongdoing. Despite regulatory concerns, CEO Vlad Tenev has defended PFOF, calling it a sustainable model. Robinhood’s General Counsel Lucas Moskowitz claims the company provides full disclosure on trading costs and maintains it offers the lowest average crypto trading costs in the market.

However, the Florida subpoena is demanding extensive internal documentation, including details on how Robinhood calculates fees, comparative pricing data across exchanges, and any information on the sale or use of customers’ crypto trading behavior.

With the subpoena deadline set for the end of the month, the case could mark a significant regulatory moment for commission-free crypto platforms, especially those leveraging PFOF. As Florida pushes for transparency amid a national conversation on crypto regulation, the outcome may set precedents for how platforms disclose pricing and manage user trust in the evolving digital asset market.