Robinhood’s cryptocurrency business is under scrutiny as Florida’s Attorney General launches an investigation into claims the trading app misled users about the true costs of crypto transactions.
The state accuses the fintech firm of presenting itself as the cheapest way to trade digital assets while allegedly hiding fees through its complex payment system.
Florida’s Attorney General, James Uthmeier, issued a subpoena demanding detailed internal records from Robinhood Crypto, the company’s crypto trading division.
U.S. Florida’s Attorney General, James Uthmeier
The subpoena covers marketing strategies, fee structures, communications with Florida users, and data on transactions and user activity throughout 2024.
But regulators are examining if this system effectively masks costs and whether it results in higher fees for users.
The inquiry also seeks insight into Robinhood’s internal training and competitive analysis related to crypto trading.
In a statement, Uthmeier said,
“Crypto is a vital component of Florida’s financial future, and President Donald Trump’s efforts to advance the crypto market will make America stronger and wealthier.”
He added,
“When consumers buy and sell crypto assets, they deserve transparency in their transactions. Robinhood has long claimed to be the best bargain, but we believe those representations were deceptive.”
The Attorney General’s office is probing whether Robinhood violated Florida’s Deceptive and Unfair Trade Practices Act by overstating how inexpensive its platform truly is compared to other crypto exchanges.
This inquiry aligns with broader regulatory pushes in the US, including a recent SEC rule requiring brokerages to disclose more about trade execution and pricing details like PFOF arrangements.
Despite the legal challenges, Robinhood’s shares have surged approximately 150 percent in 2025, driven by robust retail trading and new crypto features unveiled recently.
The company’s CEO, Vlad Tenev, made headlines by introducing token giveaways linked to partnerships with SpaceX and OpenAI, events that contributed significantly to the stock’s rise.
However, analysts remain cautious.
While an S&P Capital IQ forecast projects Robinhood’s earnings per share to grow at around 10 percent annually through 2028, this modest pace clashes with the company’s high valuation—trading at roughly 56 times its projected profits for that year.
Compared to peers like Interactive Brokers and Charles Schwab, Robinhood’s current market price implies substantial future growth is expected, which may be difficult to sustain given the crypto sector’s volatility and regulatory uncertainties.
The probe casts a spotlight on the growing debate over “commission-free” trading platforms and the hidden costs customers might be paying without fully understanding.
Robinhood’s reliance on PFOF has been contentious, with critics arguing that it could lead to conflicts of interest and less favourable trade execution for users.
Florida’s investigation could reveal whether Robinhood’s marketing glosses over these nuances and whether retail investors are truly getting the “best deal” as claimed.
The deadline for Robinhood to comply with the subpoena is set for 31 July, with the potential to influence how crypto trading platforms present fees and transparency moving forward.
This inquiry raises broader questions about how much trust consumers can place in fintech platforms promising cheap or free crypto trading.
As the digital asset space matures, clearer disclosures and fairer practices may become essential to maintain investor confidence.
Whether Robinhood’s approach will withstand regulatory and public scrutiny could set a precedent, pushing the entire industry toward greater transparency or exposing hidden trade-offs beneath seemingly attractive offers.
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