Florida Attorney General James Uthmeier has opened an investigation into trading platform Robinhood over its claims of providing the lowest cryptocurrency trading prices.
Investigation Launch
Attorney General James Uthmeier has initiated a formal investigation into the popular trading platform Robinhood for potentially misleading claims regarding their fees for cryptocurrency trading.
Robinhood's Revenue Model
The inquiry focuses on alleged breaches of Florida's Deceptive and Unfair Practices Act regarding Robinhood's competitive pricing model. Uthmeier issued a subpoena for detailed records related to the order flow payment arrangement with third-party market makers that may lead to increased costs for customers.
Company's Response
Robinhood's legal team defended the company, asserting that it maintains the best disclosure practices in the industry. General Counsel Lucas Moskowitz emphasized that customers are informed of spreads and fees associated with transactions, claiming that the platform offers truly competitive prices.
The inquiry initiated by the Attorney General of Florida questions the transparency and integrity of Robinhood's pricing model, which could impact its reputation and future operations.
