Florida Attorney General Uthmeier targets Robinhood for allegedly misleading crypto investors in Florida
Tallahassee, Florida – Florida Attorney General James Uthmeier has started an official investigation into Robinhood Crypto, LLC citing serious concerns about the trading platform’s claims regarding cryptocurrency costs. The investigation is looking into claims that Robinhood may have misled customers by claiming to be the cheapest way to purchase and sell crypto. Uthmeier says this claim does not match the evidence that is available.
The Deceptive and Unfair Trade Practices Act in Florida is at the center of the investigation. Uthmeier’s office thinks that Robinhood’s ads, which promised “the most crypto for your money” and “the lowest cost on average,” may have tricked people into thinking they were getting the best bargain when, according to internal processes, they weren’t.
“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 in a news release. “Robinhood has long claimed to be the best bargain, but we believe those representations were deceptive.”
Robinhood doesn’t charge a fixed fee like other platforms do. Instead, it uses a method called “payment for order flow” (PFOF), which sends user trades through third-party corporations that pay Robinhood for the business. Critics say this setup can result in worse trade execution and higher overall costs to consumers, as market makers must turn a profit on the other side of those trades—often at the customer’s expense.
Uthmeier has sent Robinhood a broad subpoena asking for plenty of internal records to find out if Florida residents were adversely affected. This includes infographics showing how the company is set up, how employees are involved in marketing and pricing, advertising materials, information about client transactions, and any comparisons of Robinhood’s prices to those of its competitors.
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The subpoena also asks for data about how Robinhood tells consumers about its fees and how it works with market makers. Of particular interest are any internal training materials given to staff, policies on order execution, and communications from Florida users about fees or trade costs.
Robinhood has until July 31, 2025, to comply with the subpoena. The investigation’s findings might have big effects on the whole Florida crypto trading scene, not just Robinhood.
Uthmeier’s move shows that state regulators are ready to hold big platforms accountable as digital money becomes more common. The message to investors is clear: openness is not an option; it is required.
