Florida Attorney General Probes Robinhood Over Crypto Fee Claims

Florida Attorney General James Uthmeier opened an investigation into Robinhood Crypto over claims the platform offers “lowest cost on average” crypto trades.

The investigation centers on whether Robinhood’s marketing violates Florida’s Deceptive and Unfair Trade Practices Act. Uthmeier’s office wants records covering marketing strategies, fee-setting procedures, and Florida-specific user data for 2024.

The subpoena requires Robinhood to provide organizational charts, employee lists for marketing and fee structure roles, and all materials supporting its “lowest cost on average” claims.

The order also seeks advertisements from social media and search engines that promote Robinhood’s fee claims, internal training materials about trading costs, pricing analyses of competing platforms, and communications with Florida users about fees.

Uthmeier stated that consumers deserve transparency in crypto transactions. He framed the issue within a broader policy context, saying, “Crypto is a vital component of Florida’s financial future,” and praised President Trump’s efforts to advance crypto markets. He added that Robinhood claimed to be the best bargain but believes those representations were deceptive. 

Robinhood’s general counsel Lucas Moskowitz responded that the platform’s disclosures are “best-in-class” and customers can trade crypto at the lowest cost on average. He noted that fee details and revenue sources are outlined at each transaction stage.

The investigation focuses on Robinhood’s use of payment for order flow (PFOF). Under this practice, Robinhood routes user trades to third-party market makers in exchange for a fee. Critics argue PFOF can widen price spreads for users, which may offset the absence of traditional commission charges.

The inquiry places new scrutiny on crypto platforms’ marketing practices and could set a precedent for how states enforce consumer-protection laws in the digital-asset sector. In the past, Robinhood settled with the SEC, paying $65 million over claims it misled customers about execution prices without admitting guilt.