Robinhood hit with second probe over misleading crypto marketing
2025-07-11 09:13:05
Main Idea
The Florida Attorney General’s office has launched an investigation into Robinhood’s cryptocurrency business, focusing on its payment-for-order-flow (PFOF) model and alleging deceptive practices.
Key Points
1. The Florida AG’s office is investigating Robinhood’s crypto business, citing concerns over its payment-for-order-flow (PFOF) model and lack of transparency.
2. Attorney General James Uthmeier called Robinhood’s practices 'deceptive' and emphasized the need for investor transparency.
3. A subpoena has been issued, requiring Robinhood to comply by July 31.
4. This is the second regulatory challenge for Robinhood’s crypto unit in a week, following a separate EU probe related to stock token offerings.
5. Robinhood CEO Vlad Tenev has defended the company’s tokenization model despite increasing regulatory scrutiny.
Description
The trading platform is facing mounting regulatory pressure, landing under the microscope of another watchdog just days after a separate investigation. According to a Thursday press release , the Florida Attorney General’s office has launched an investigation into Robinhood’s cryptocurrency business. Central to the probe are allegations that the company used deceptive marketing tactics to mislead users about trading costs, “falsely promoting” its trading platform as the “least expensive way to p...
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