Florida initiates investigation against Robinhood Crypto because of supposedly misleading low price promises

Florida's Attorney General James Uthmeier initiated an investigation against Robinhood Crypto on Thursday. The accusation: The platform could have misled customers that it has applied as the cheapest way to buy cryptocurrencies.

In a statement, the General Prosecutor's office announced that a summons on the crypto unit of Robinhood Markets had been issued in order to request internal documents as part of the examination of possible violations of the “Florida Deceptive and unfair Trade Practices Act”.

“When consumers buy and sell crypto-assets, they deserve transparency in their transactions,” said Uthmeier. “Robinhood has long claimed to offer the best offer, but we believe that these statements were misleading,” he added.

The platform enables users to buy and sell users, stocks and cryptocurrencies without direct commissions. Instead, the company earns money by forwarding customer orders to third -party companies that Robinhood pay within the framework of the so -called “Payment for Order Flow” (PFOF), according to the General Prosecutor.

Lucas Moskowitz, General Counsel of Robinhood Markets, said: “We open our customers throughout the course of the trade, which clearly show the spread or the fees associated with the transaction and the income of Robinhood. We are proud to be a place where customers can act on average at the lowest costs. “

Robinhood crypto has time to react to the summons by July 31.