Florida Attorney General Targets Robinhood Crypto

In a significant move, Florida Attorney General James Uthmeier has initiated an investigation into Robinhood Crypto, LLC, the cryptocurrency arm of Robinhood Markets Inc. The probe centers around allegations that the company misled its customers regarding the true costs of trading cryptocurrencies.

Allegations of Deceptive Practices

Uthmeier, citing local media reports, accused Robinhood of promoting itself as the most cost-effective platform for buying and selling cryptocurrencies while allegedly imposing higher hidden fees. "Robinhood has long claimed to be the best bargain, but we believe those representations were deceptive," Uthmeier stated, highlighting the gravity of the accusations.

Subpoena Issued for Internal Documents

As part of the ongoing investigation, Florida officials have issued a subpoena demanding a range of internal documents from Robinhood. These include marketing materials and user data, with the company required to respond by July 31. This development marks a critical juncture in the scrutiny of cryptocurrency trading platforms by regulatory bodies.