Overview

• The subpoena, issued July 10 under Florida’s Deceptive and Unfair Trade Practices Act, requires Robinhood Crypto to hand over internal pricing, marketing, and user trade data by July 31.
• James Uthmeier alleges Robinhood’s longstanding “lowest-cost” marketing was deceptive because hidden spreads and PFOF arrangements could drive up customer expenses.
• The probe zeroes in on the platform’s payment for order flow practice, under which customer orders are routed to third parties that compensate Robinhood.
• Robinhood Markets general counsel Lucas Moskowitz said the company fully discloses its spreads, offering the lowest average trading cost for cryptocurrencies.
• The state inquiry follows a $65 million SEC penalty in 2020 over execution quality disclosures and reflects growing global scrutiny of payment for order flow practices.