The main Florida prosecutor is looking for a diversified range of documents from the negotiation company.
The Robinhood Trading application is the subject of a survey by Attorney General James Uthmeier For what the main state prosecutor says, these are allegations of violation of Law on misleading and unjust practices in Florida.
Uthmeier said in a press release This Robinhood promotes its platform as the cheapest to acquire cryptocurrency. Uthmeier said it was not true.
“Crypto is an essential element of the financial future of Florida and the President Donald Trump The efforts to advance the cryptography market will make America stronger and richer. When consumers buy and sell cryptographic assets, they deserve transparency in their transactions, “said Uthmeier.” Robinhood has long claimed to be the best deal, but we believe that these representations were misleading. “”
The Uthmeier office has issued assignments for internal documents from Robinhood. The company has its headquarters in Menlo Park, California.
Robin claimed That its platform is “the lowest cost on average” with regard to cryptocurrency trading and says that customers can get “the most crypto for your money”.
The Uthmeier office maintains that evidence shows that Robinhood can be more expensive than negotiating other platforms. The press release also indicated that “third parties who pay Robinhood for the order of orders may have to charge less favorable prices to Robinhood customers with whom they exchange to be profitable”.
Robinhood generates income channeling customer trades to third -party companies that pay Robinhood for the opportunity to seize the opposite side of the professions for their own customers. It is a process called payment for the order flow (Pfof).
“There is evidence that trade in Robinhood is in fact more expensive than trade on competing platforms because of its PFOF structure compared to competitors offering negotiation costs on all,” the press release said.
The assignment of uthmeier seeks a plethora of documents ranging from the company’s report structure, the names of the current and former employees of the marketing department and the commercial platform and those who determine the commissions and the costs, the advertising documents, the practices of the PFOF, the training equipment, the documents related to the competitors of Robinhood, to negotiation data in cryptocurrency, by users Florida and otherwise.
Robinhood has until July 31 to respond to assignment.
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