Attorney General James Uthmeier opens formal investigation into Robinhood over concerns of misleading crypto cost claims affecting Florida investors

Tallahassee, Florida – Florida Attorney General James Uthmeier has opened an investigation into Robinhood Crypto, LLC, raising concerns about whether the popular trading platform is misleading users about the true cost of buying and selling cryptocurrency. The probe centers on potential violations of Florida’s Deceptive and Unfair Trade Practices Act and is aimed at protecting Florida investors from potentially false claims made by the company.

Robinhood Crypto, a subsidiary of the well-known stock and crypto trading platform Robinhood, is under scrutiny for its marketing practices. The company has often advertised itself as the most affordable place to trade crypto, promising users “the most crypto for your money.” But according to Uthmeier’s office, there’s reason to believe that these statements may not be accurate and could be misleading consumers who rely on that information when making investment decisions.

“Crypto is a vital component of Florida’s financial future, and President Trump’s efforts to advance the crypto market will make America stronger and wealthier. When consumers buy and sell crypto assets, they deserve transparency in their transactions,” said Attorney General James Uthmeier. “Robinhood has long claimed to be the best bargain, but we believe those representations were deceptive.”

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At the heart of the issue is Robinhood’s business model. Unlike some platforms that charge straightforward commissions, Robinhood uses a model known as payment for order flow (PFOF). This means the company routes its users’ trades through third-party firms that pay Robinhood for the chance to execute those trades. While this allows Robinhood to offer commission-free trading, it may come at a hidden cost to the user.

According to the Attorney General’s office, this PFOF structure can result in worse pricing for users, as the third-party firms involved in executing trades may give slightly less favorable rates in order to remain profitable. This stands in contrast to other platforms that present a clearer “all-in” cost of trading up front.

To determine whether Robinhood’s marketing and pricing practices have unfairly affected Florida consumers, Uthmeier has issued a subpoena demanding a wide range of internal documents. These include advertising materials, marketing staff records, employee roles in determining fees and commissions, disclosures made to customers, and data on Florida user transactions.

The subpoena also seeks:

• Records showing how Robinhood determines prices through its PFOF agreements.
• Communications with Florida users about fees or costs.
• Comparative pricing data between Robinhood and competing platforms.
• Details about any training given to staff on how to discuss trading costs with users.
• A breakdown of how many Florida residents used the platform in 2024 and the trades they made.

Robinhood is required to respond to the subpoena by July 31, 2025.

While the investigation is still in its early stages, its implications could be significant. Uthmeier’s office is signaling a tougher stance on transparency and fairness in the growing world of cryptocurrency investing, especially as more Floridians become active in digital asset markets. The probe is also part of a broader effort to align Florida’s financial markets with the pro-crypto stance promoted by leaders such as former President Donald Trump.

The state’s concern isn’t with cryptocurrency itself, but rather with making sure that the tools investors use to access it are fair, honest, and clear about costs. Misleading marketing could lead everyday users to unknowingly pay more for their trades than they would on other platforms — a scenario that Uthmeier says must be addressed.

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“When consumers buy and sell crypto assets, they deserve transparency in their transactions,” Uthmeier emphasized. “If Robinhood is saying one thing and doing another, we need to make that known to the public and correct course.”

Robinhood has not yet issued a public response to the subpoena or the investigation. However, the company has previously defended its pricing structure and PFOF model, stating it gives users access to competitive pricing and commission-free trading.

The investigation underscores the growing pains in the crypto industry as it transitions from a loosely regulated digital frontier into a more mature financial system where state and federal regulators are increasingly stepping in. In Florida, where both the state government and private citizens have shown strong interest in crypto, the stakes are especially high.

For now, investors are advised to stay informed and keep a close eye on how platforms like Robinhood represent their services. The outcome of the investigation could influence not just Robinhood’s business practices in Florida but also set an important precedent for transparency in the broader cryptocurrency market.

As the July 31 deadline approaches, all eyes will be on how Robinhood responds — and whether the company can justify the bold marketing claims that drew in millions of crypto traders, including many in the Sunshine State.