Robinhood Under Fire for Crypto Cost Promises

Key Points

1. Florida Attorney General James Uthmeier launched an investigation into Robinhood for alleged deceptive marketing practices and violations of Florida’s Deceptive and Unfair Practices Act.

2. Robinhood’s use of payment for order flow (PFOF) is under scrutiny, with claims that third parties might charge less favorable prices to stay profitable.

3. Hayden Davis, creator of the LIBRA meme coin, seeks dismissal of a class-action lawsuit in New York, arguing lack of jurisdiction and that marketing was global, not targeted at New York residents.

4. The Midas Project filed a complaint with the IRS, accusing OpenAI of potential tax law violations and conflicts of interest, particularly concerning CEO Sam Altman’s dual roles.

5. Robinhood’s stock rose 4.4% despite legal scrutiny, buoyed by a broader crypto market rally, nearing its all-time high.