The Securities and Exchange Commission (SEC) has charged Florida-based TradeStation Crypto, Inc. with failing to register the offer and sale of cryptocurrency lending products that promised investors a way to earn interest.
The agency announced the charges on Wednesday and said TradeStation had agreed to settle the charges and pay a $1.5 million fine without admitting or denying the SEC’s findings. name.
TradeStation is a mainstream financial platform founded in 1982 and acquired by Japanese financial group Monex in 2011. In 2020, it began offering cryptocurrency savings accounts that allow customers to earn interest. As of 2021, TradeStation has 11,122 active users worldwide engaging in features of interest. filing.
The SEC said TradeStation’s cryptocurrency lending products are securities and do not qualify for registration exemption. TradeStation ceased providing services pursuant to the SEC’s order on June 30, 2022, the agency said. Earlier this year, TradeStation presentation Cryptocurrency-related products and services in the United States are scheduled to end on February 22nd. The company did not admit any wrongdoing.
“This case highlights the importance of ensuring that investors benefit from the disclosure requirements provided by the federal securities laws, regardless of the label applied to the offering,” Stacy Bogert, deputy director of the SEC’s Division of Enforcement, said in a statement. said.
role of the state
In a parallel action announced Wednesday, TradeStation agreed to pay an additional $1.5 million to resolve a cryptocurrency product investigation by state securities regulator the North American Securities Administrators Association (NASAA).
A task force of eight state securities regulators has reportedly been involved in investigating TradeStation’s cryptocurrency interest earning program over the past year. NASAA.
“We understand that investing in crypto asset securities can be attractive, but investors should take the time to research cryptocurrency-related investments before handing over their money,” said Elizabeth Harris, director of the New Jersey Securities Division. name On Wednesday.
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