Florida’s Attorney General has initiated an investigation into Robinhood, accusing the trading platform of misleadingly promoting its crypto services as the most cost-effective option. Attorney General James Uthmeier claims that Robinhood has violated the state’s Deceptive and Unfair Practices Act, issuing a subpoena for relevant documents. Robinhood's General Counsel, Lucas Moskowitz, defended the platform, asserting that it maintains transparency about fees and provides competitive pricing. Uthmeier pointed to the payment for order flow model used by Robinhood, suggesting it potentially inflates costs for customers as third parties may charge higher prices to remain profitable. This practice has raised concerns regarding conflicts of interest for brokers. Despite the investigation, Robinhood's stock saw a 4.4% increase on the day, indicating investors were not overly concerned about the probe, although there was a slight decline in after-hours trading. Robinhood has until the end of July to respond to the subpoena, amid ongoing discussions about transparency in cryptocurrency trading.

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