By Mark Hunter
2 days agoMon Jul 14 2025 08:17:56
Reading Time: 2 minutes
- Florida’s Attorney General has launched an investigation into Robinhood Crypto over its crypto asset practices
- The probe seeks to determine whether the company misled investors or violated state law
- The inquiry follows a growing wave of regulatory scrutiny against crypto platforms
Florida’s Attorney General James Uthmeier has opened a formal investigation into Robinhood’s cryptocurrency-related activities, focusing on whether the trading platform engaged in deceptive or unfair practices that harmed Florida consumers. According to Uthmeier, Robinhood Crypto is allegedly “breaking Florida’s Deceptive and Unfair Practices Act by falsely promoting its crypto platform as the least expensive way to purchase crypto,” when his department has uncovered evidence to suggest that is not true. The move signals a sharp escalation in state-level scrutiny as regulators nationwide continue to grapple with how to enforce rules around digital assets.
AG Targets Consumer Harm
In a press release issued last week, Uthmeier confirmed the probe will examine whether Robinhood’s crypto offerings violated Florida’s Deceptive and Unfair Trade Practices Act:
Crypto is a vital component of Florida’s financial future, and President Trump’s efforts to advance the crypto market will make America stronger and wealthier. When consumers buy and sell crypto assets, they deserve transparency in their transactions. Robinhood has long claimed to be the best bargain, but we believe those representations were deceptive.
Uthmeier added that bad actors have “sought to take advantage of the excitement and confusion” generated by the Trump administration’s promotion of crypto, adding, “Floridians deserve transparency and fairness when they invest their hard-earned money.”
The state’s investigation will assess how Robinhood Crypto presents crypto investment risks, its user interfaces, disclosures, and policies around asset storage and accessibility. Uthmeier emphasized that his office will hold accountable “any company that misleads consumers or skirts the law,” regardless of whether the assets in question are considered securities or not.
Crypto Under the Microscope
The announcement places Robinhood Crypto among a growing list of crypto platforms facing legal heat at both state and federal levels, with Uthmeier’s action coming in the wake of the Florida Office of Financial Regulation’s own warnings about crypto fraud and unlicensed activity. While the Attorney General did not specify what prompted the investigation, the press release notes it was launched to “protect Florida consumers and ensure companies are not operating above the law.”
Last September, Robinhood Crypto settled with California Attorney General Rob Bonta for $3.9 million after an investigation revealed that the company prevented customers from withdrawing their crypto assets from 2018 to 2022.
