Florida Attorney General James Uthmeier has launched an official investigation into Robinhood Crypto. He issued a subpoena under Florida’s Deceptive and Unfair Trade Practices Act, citing the firm’s violation of the state’s approved advertising laws.
Robinhood Crypto Comes Under State Investigation
The subpoena seeks internal documents, including marketing materials, fee structures, payment-for-order-flow agreements, and comparative analyses of competitor pricing. Notably, the authorities want the firm to submit records related to the company’s claims that users “trade crypto at the lowest cost on average” and “get the most crypto” for their money.
The attorney general criticized the platform for allegedly misrepresenting its fee structure, saying,
“Robinhood has long claimed to be the best bargain, but we believe those representations were deceptive.”
In an official news release, he noted that despite promoting commission-free crypto trading, Robinhood earns revenue through payment-for-order-flow (PFOF). He emphasized that the model results in pricing that is less favorable or expensive than other crypto platforms. The attorney general mandates that the platform respond to the subpoena on or before July 31.
Nonetheless, a report from media outlet Reuters claims the company’s general counsel, Lucas Moskowitz, responded. He affirmed that the company provides “clear pricing details” and offers “crypto at the lowest cost on average,” maintaining the transparency of its structure.
Still, if the claims of deceptive advertising are validated, the outcome of the probe could lead to substantial repercussions under Florida law. Robinhood Crypto could face civil penalties, revised marketing disclosures, and possible legal action.
Robinhood’s Regulatory Hurdles
Over the years, Robinhood has navigated multiple regulatory storms. In September 2024, the company agreed to a $3.9 million settlement with the California Department of Justice. The resolution came after lawmakers determined that Robinhood Crypto had prevented users from withdrawing their crypto, forcing them to sell back assets on the platform instead.
More recently, in February 2025, the SEC concluded its 9-month investigation into crypto platform with no enforcement action. The probe scrutinized whether the platform’s crypto offerings violated federal securities laws. However, the SEC’s Enforcement Division determined the case did not warrant penalties.
Meanwhile, according to a July 10 filing from Cathie Wood’s ARK Invest, the firm sold approximately 58,504 shares ($5.8 million) of Robinhood. The sale comes during a period of heightened crypto activity as Bitcoin recently surged past $118,000.
