Florida AG Investigates Robinhood (HOOD) Crypto Unit for Deceptive Practices

Robinhood Markets, Inc. (NASDAQ:HOOD) is one of the best performing crypto stocks so far in 2025. On July 10, a statement from the Florida Attorney General’s office revealed that Robinhood Markets’ cryptocurrency unit, Robinhood Crypto LLC, is under investigation. The investigation centers on allegations that Robinhood falsely promotes its crypto trading platform as the “least expensive way to purchase crypto” and claims to offer users “the most crypto for your money.” The Florida AG’s office argues these representations are deceptive and violate Florida’s Deceptive and Unfair Practices Act.

Florida AG Investigates Robinhood (HOOD) Crypto Unit for Deceptive Practices

Florida’s Attorney General stated, “Robinhood has long claimed to be the best bargain, but we believe those representations were deceptive,” emphasizing the need for transparency in crypto transactions for consumers.

The probe specifically scrutinizes Robinhood’s use of the payment for order flow (PFOF) business model. The model involves the company routing customer trades to third-party market makers in exchange for payment, rather than charging direct commissions. This model is claimed to potentially result in customers receiving less favorable trade execution prices, leading to trading costs that may be higher than on competing platforms offering all-in trading costs.

Robinhood’s General Counsel for Crypto, Lucas Moskowitz, defended the platform, stating the company provides “best-in-class” disclosures, outlining all spreads, fees, and revenue generated by Robinhood during trades, claiming it offers the lowest average costs to users.

Robinhood Markets, Inc. (NASDAQ:HOOD) is a financial technology company that offers commission-free trading in stocks, options, and cryptocurrencies. It operates a cryptocurrency trading platform through Robinhood Crypto, LLC, allowing users to buy, sell, and hold digital assets. The company’s crypto operations expanded in 2025 following its acquisition of Bitstamp, which added institutional trading capabilities and increased global reach.

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Disclosure: None. This article is originally published at Insider Monkey.