TradeStation Crypto Pays $3 Million Fine For Unregistered Crypto Product Sales
Key Points:
- TradeStation Crypto was fined $3 million for unregistered crypto-lending product sales.
- The SEC charges TradeStation for failure to register crypto lending and imposes a $1.5 million penalty.
Florida-based financial services provider TradeStation Crypto, Inc. has reached a settlement with the Securities and Exchange Commission (SEC) and state regulators, agreeing to pay $3 million in penalties.
TradeStation Crypto Settles Charges: Fined $3 Million for Unregistered Product
The settlement resolves allegations that the firm unlawfully sold and marketed an unregistered crypto-lending product to investors. This development underscores the increasing scrutiny from regulatory bodies toward crypto-based financial products.
The SEC’s order reveals that TradeStation Crypto commenced offering the crypto lending product with an interest feature around August 2020. Marketed as a means for investors to earn interest on their crypto assets, TradeStation exercised complete discretion over asset deployment to generate revenue for interest payments.
The order determined TradeStation sold the product as a security and, lacking a registration exemption, should have registered its offer and sale, which it failed to do.
TradeStation Announces U.S. Crypto Service Termination Amid Regulatory Scrutiny
TradeStation Crypto voluntarily ceased offering the interest feature to investors on June 30, 2022, and announced plans earlier this year to terminate all its U.S.-based crypto-related products and services by February 22, 2024.
Stacy Bogert, Associate Director of the SEC’s Division of Enforcement, emphasized the significance of disclosure requirements under federal securities laws, regardless of the offering’s label.
Without admitting or denying the SEC’s findings, TradeStation agreed to a cease-and-desist order and a $1.5 million civil penalty. Additionally, it agreed to pay an identical amount in fines to settle parallel charges by state regulatory authorities.
The settlement not only impacts TradeStation’s operations, leading to the termination of its U.S.-based crypto-related products and services, but also serves as a stark reminder to cryptocurrency actors about the importance of compliance with securities laws.
Founded in 2018, TradeStation Crypto, a subsidiary of TradeStation Group acquired by Monex in 2011, has played a significant role in providing crypto-related services.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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TradeStation Crypto Pays $3 Million Fine For Unregistered Crypto Product Sales
Key Points:
- TradeStation Crypto was fined $3 million for unregistered crypto-lending product sales.
- The SEC charges TradeStation for failure to register crypto lending and imposes a $1.5 million penalty.
Florida-based financial services provider TradeStation Crypto, Inc. has reached a settlement with the Securities and Exchange Commission (SEC) and state regulators, agreeing to pay $3 million in penalties.
TradeStation Crypto Settles Charges: Fined $3 Million for Unregistered Product
The settlement resolves allegations that the firm unlawfully sold and marketed an unregistered crypto-lending product to investors. This development underscores the increasing scrutiny from regulatory bodies toward crypto-based financial products.
The SEC’s order reveals that TradeStation Crypto commenced offering the crypto lending product with an interest feature around August 2020. Marketed as a means for investors to earn interest on their crypto assets, TradeStation exercised complete discretion over asset deployment to generate revenue for interest payments.
The order determined TradeStation sold the product as a security and, lacking a registration exemption, should have registered its offer and sale, which it failed to do.
TradeStation Announces U.S. Crypto Service Termination Amid Regulatory Scrutiny
TradeStation Crypto voluntarily ceased offering the interest feature to investors on June 30, 2022, and announced plans earlier this year to terminate all its U.S.-based crypto-related products and services by February 22, 2024.
Stacy Bogert, Associate Director of the SEC’s Division of Enforcement, emphasized the significance of disclosure requirements under federal securities laws, regardless of the offering’s label.
Without admitting or denying the SEC’s findings, TradeStation agreed to a cease-and-desist order and a $1.5 million civil penalty. Additionally, it agreed to pay an identical amount in fines to settle parallel charges by state regulatory authorities.
The settlement not only impacts TradeStation’s operations, leading to the termination of its U.S.-based crypto-related products and services, but also serves as a stark reminder to cryptocurrency actors about the importance of compliance with securities laws.
Founded in 2018, TradeStation Crypto, a subsidiary of TradeStation Group acquired by Monex in 2011, has played a significant role in providing crypto-related services.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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