- The SEC has announced charges against TradeStation Crypto, a crypto lender.
- TradeStation Crypto has agreed to pay a $3 million fine in response to the charges.
TradeStation Crypto has been hit with charges by the US Securities and Exchange Commission (SEC) for failing to register the offer and sale of its crypto lending product. This product allowed US investors to deposit or purchase crypto assets in exchange for promised interest payments from the company.
“The firm failed to register the offer and sale of a crypto lending product that allowed U.S. investors to deposit or purchase crypto assets into a TradeStation account in exchange for the company’s promise to pay interest,” the Commission said in a statement.
According to the SEC, TradeStation Crypto marketed its service as a means of earning interest on investments and making crypto assets work for investors. The company had full discretion over managing its assets to generate income for paying investors.
TradeStation voluntarily halted its product offering on June 30, 2022, and previously announced its plan to discontinue all cryptocurrency-related services by February 22, 2024.
It is worth noting that TradeStation did not dispute the findings of the agency and agreed to pay a $1.5 million fine. Additionally, the firm will pay another $1.5 million to settle similar charges brought by government regulators.
It is important to mention that on February 6, 2024, the SEC implemented new rules concerning liquidity providers.