A trading platform that enables cryptocurrency transactions is currently under investigation by Florida’s leading prosecutor. Allegations have emerged that it falsely advertises its services as providing the most affordable options for purchasing cryptocurrencies. In light of these claims, the state attorney has initiated legal proceedings to compel the platform to release internal documentation.
The attorney general of Florida, James Uthmeier, has raised concerns regarding the platform’s assertion of being “the least expensive way to purchase crypto,” suggesting that such claims do not hold true based on available evidence. He indicated that the platform’s activities might be in violation of the state’s Deceptive and Unfair Practices Act.
Uthmeier emphasized the importance of transparency in transactions related to cryptocurrency, making it clear that consumers should be able to trust the information provided by service providers. The attorney general criticized the longstanding claims of the platform, asserting that they may be misleading to users.
A particular point of contention is the platform’s payment-for-order-flow (PFOF) business model, which it utilizes to facilitate crypto trades without charging conventional commissions. Instead, the platform generates revenue by directing trades to third-party companies in return for payment. The attorney general’s office has suggested that evidence indicates trading fees on the platform may, in fact, be higher compared to competing services that provide clearer, all-inclusive pricing.
In recent times, while the platform achieved popularity through commission-free stock trading, cryptocurrency has emerged as a significant revenue stream, surpassing earnings from options trading—previously its top source of income. Despite this growth, the revenue from crypto in early 2025 saw a substantial decline, dropping to $252 million, which was approximately 30% lower than the previous quarter. This decrease has led the company to explore ways to diversify its income sources in response to the fluctuating trading volumes in the cryptocurrency market.
Additionally, the platform has introduced tokenized stocks for European users, a move that has sparked controversy. The European Union has commenced an inquiry into the specific structure of the tokenized stocks that are being offered, adding another layer of scrutiny to the platform’s operations.
Overall, the investigation and subsequent legal actions taken by the state attorney signify a critical examination of the trading platform’s advertising practices and its impact on consumer trust in the burgeoning field of cryptocurrency trading. This development raises larger questions about transparency, pricing structures, and regulatory compliance in the ever-evolving landscape of digital assets.