Florida Probes Robinhood for Deceptive Crypto Promotion

Florida’s attorney general investigates Robinhood for allegedly falsely promoting its crypto services as the cheapest, violating Florida laws. Robinhood defends its transparency, claiming to offer the lowest costs for trading crypto. The platform generates revenue through Payment for Order Flow (PFOF), a common practice in stock and crypto trading.

Robinhood CEO Vlad Tenev defends PFOF amid concerns about conflicts of interest. In December 2020, Robinhood settled with the SEC for $65 million without admitting guilt. The platform argues its operations are transparent and provides pricing information to customers. Investors remain unfazed by Florida’s probe, with Robinhood stock closing up 4.4% at $98.70.

Read more at Cointelegraph: Robinhood Under Florida Probe For Alleged Deceptive Crypto Promotion