Key Takeaways
- Robinhood is under investigation for its crypto ad promising the “cheapest” trades.
- Florida AG issued a subpoena seeking proof to back the claim.
- Robinhood says it stands by its pricing disclosures and transparency.
Robinhood’s claim to be the “cheapest way to buy crypto” has landed it in hot water.
The Florida Attorney General has opened a formal investigation into whether the company’s marketing crossed the line into misleading territory.
In an industry already under the microscope for flashy ads and big promises, Robinhood’s bold tagline may have pushed too far, at least in the eyes of state regulators.
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Florida AG: Show Us the Receipts
Florida Attorney General James Uthmeier confirmed that his office sent a subpoena to Robinhood, demanding documentation to prove its “best bargain” claim when it comes to crypto trading.
“When consumers buy and sell crypto assets, they deserve transparency in their transactions,” Uthmeier said. “Robinhood has long claimed to be the best bargain, but we believe those representations were deceptive.”
The investigation centers on Robinhood’s use of payment for order flow (PFOF)—a practice where the company routes trades through third-party firms that pay for the order volume.
Critics say this model could result in less favorable trade prices for customers, even if the trades are commission-free.
That discrepancy, Florida officials argue, may leave users worse off compared to platforms with more upfront, all-in pricing.
Robinhood Pushes Back
Robinhood says it stands by its pricing model and denies any wrongdoing.
Lucas Moskowitz, General Counsel at Robinhood Markets, defended the company’s disclosures, saying it provides clear pricing info throughout the lifecycle of a trade, including spreads, fees, and the revenue the platform collects.
“We’re proud to be a place where customers can trade crypto at the lowest cost on average,” he added.
Robinhood has until July 31 to respond to the subpoena.
Not the First Crypto Ad in the Crosshairs
Robinhood isn’t the only company to face regulatory pressure over crypto marketing. From Coinbase to Binance and Kraken, regulators have tightened the leash on promotions that don’t properly disclose risks.
The U.K.’s Financial Conduct Authority (FCA), for example, now requires all crypto marketing to be authorized and compliant. Just weeks after its new rules kicked in, over 220 alerts were issued for misleading promotions.
In the U.S., the Securities and Exchange Commission (SEC) and Federal Trade Commission (FTC) are also cracking down on misleading advertising, especially those promising high returns without clearly communicating the risks involved.
With regulators watching more closely than ever, Robinhood’s marketing pitch might have just become a test case for how far crypto ads can really go.
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Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
