Florida’s leading prosecutor has opened an investigation of the Robinhood Trading Platform, allegedly incalculating crypto services as the least expensive market.
However, Lucas Moskowitz, Robinhood’s overall advice, told Cointelegraph in a statement that the platform was clear about its fees, and customers would trade crypto at the lowest cost on average.
In a statement on Thursday, Florida’s lawyer General James Uthmeier accused Robinhood of breaking fraudulent and unfair skills in Florida has released a subpoena requesting a variety of documents from the platform.
“Crypto is an essential ingredient in Florida’s financial finance,” and when “buyers 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 are deceptive.”
On its website, Robinhood claims entrepreneurs Buy and sell crypto at the lowest cost to average in the US.
Attorney General Payment claim for order flow will blame
Robinhood Generates income by payment for order flow (PFOF), which makes Florida’s Attorney General more expensive because “third parties paying Robinhood for order flow can charge less desirable prices” to be useful.
Brokerage The companies that use PFOF Receive fees for directing orders and implementing trading to a particular market manufacturer or exchange, usually with the fractions of one penny per part.
In an interview in December 2023 CNBC, Robinhood CEO Vlad Tenev defended The skill amid concerns that it creates a conflict of interest in which brokers do not always behave in the best interests of clients.
Robinhood Sumang -ayon To pay a $ 65 million fine in December 2020, with no confession, to resolve charges from the SEC claimed, among other things, that Robinhood is incorrectly claimed that its customers’ commands are carried out at prices lower than other brokers.
Robinhood argues that its operation is clear
In talking to Cointelegraph, Robinhood’s general advice Lucas Moskowitz argued that “disclosures were best-class.”
“We announced the pricing information to customers during the lifecycle of a trade that clearly outlined the spread or the fees associated with the transaction and received Robinhood’s income,” he said.
“We are proud to be a place where customers can trade crypto at the lowest cost on average,” Moskowitz added.
Robinhood is up to the end of July to respond to the subpoena.
Related: Private companies line up to join Robinhood’s tokenized Equity Platform: CEO: CEO
Stock up in closely trading
Robinhood investors seemed to be backing down the news about Florida’s investigation, including stock Closing Thursday’s trading session up to 4.4% to $ 98.70 in conjunction with a rally in the crypto market.
Now it’s just a stone disposal from all times high $ 100.88.
However, at the time of trading time, the stock retreated slightly to $ 97.23, representing a drop of 1.49%.
During the last month, its shares performed a 30% rally, which had relevant to its strategic embrace of blockchain technology and tokenization.
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