The Florida Attorney General’s office has launched a second formal investigation into Robinhood, focusing specifically on the company’s cryptocurrency operations.
According to a press release issued Thursday, the probe centers on allegations that Robinhood misled users with deceptive marketing claims about the cost of trading crypto on its platform.
The AG’s office accuses Robinhood of “falsely promoting” itself as the cheapest option for buying digital assets.
The development came despite using a controversial payment-for-order-flow (PFOF) model that may result in hidden costs for users.
The latest legal action intensifies regulatory scrutiny over Robinhood’s crypto division, raising broader concerns about transparency and fairness in the digital trading space.
Focus on Payment-for-Order-Flow Model and Misleading Cost Claims
At the heart of the Florida AG’s investigation is Robinhood’s use of the PFOF model, which has long been a point of contention in financial circles.
Under this system, rather than charging users direct commissions, Robinhood routes trades to third-party market makers in exchange for payment.
While this allows the company to advertise “commission-free” trading, the Florida AG argues that it may lead to worse execution prices for customers.
Notably, effectively making trades more expensive than those on platforms offering upfront pricing.
Attorney General James Uthmeier criticized Robinhood’s long-standing claims of offering the best bargain, asserting that such representations are potentially deceptive and undermine investors’ rights to full and honest disclosure.
Also Read: Robinhood Agrees to Pay $29.75 Million to Settle FINRA Investigation Into Crypto Regulatory Failures
Subpoena Demands Extensive Documentation from Robinhood
As part of the ongoing probe, the Florida Attorney General’s office has issued a comprehensive subpoena to Robinhood, compelling the company to submit a wide range of documents by July 31.
The development includes internal communications, marketing materials, pricing structures, user disclosures, and employee records related to its crypto operations in Florida.
The subpoena aims to uncover whether Robinhood knowingly misled users and to evaluate whether its business practices align with state consumer protection laws.
AG Uthmeier framed the action as a step toward safeguarding Florida’s financial future.
The plan aims to emphasize the importance of crypto to the state’s economy and aligning the move with former President Trump’s agenda to advance the U.S. crypto market.
Robinhood Faces Rising Global Scrutiny Over Crypto Activities
This Florida probe marks the second major regulatory challenge for Robinhood’s crypto division in just over a week.
On July 7, 2025, European regulators launched a separate investigation into Robinhood’s tokenized stock offerings following backlash.
The backlash came from several major firms, including OpenAI, which denied authorizing the sale of tokenized shares in its name.
Despite mounting criticism, Robinhood CEO Vlad Tenev has continued to champion the firm’s strategy, arguing that tokenization democratizes access to private equity markets.
He has also pointed to Robinhood’s expanding dialogue with global regulators as evidence of its commitment to compliance and innovation in financial technology.
Also Read: Robinhood CEO Vlad Tenev Declares ‘Crypto is the Future,’ Outlines Expansion Plans
Strategic Expansion Continues Despite Legal Pressure
Even as regulatory heat intensifies, Robinhood is aggressively pursuing its international crypto expansion.
The company is developing a Layer 2 blockchain on the Arbitrum network, aiming to launch a permissionless system by 2026 that will support crypto staking, perpetual futures, and tokenized private equity.
Robinhood also recently announced a $180 million acquisition of Canadian crypto platform WonderFi, giving it access to over C$2.1 billion in assets under custody.
Meanwhile, in July Robinhood made it possible that European users will soon be able to trade over 200 tokenized U.S. stocks and ETFs, with plans to expand to 2,000 by year-end.
These moves illustrate Robinhood’s ambition to become a global player in the decentralized finance space, though the firm’s legal and regulatory challenges may ultimately shape how far and how fast it can go.
Also Read: Robinhood to Launch Blockchain Platform for Tokenized U.S. Stocks in Europe