TradeStation Crypto to Pay $3 Million to Settle SEC Charges
TradeStation Crypto Settles Charges
Cryptocurrency platform TradeStation Crypto has agreed to pay $3 million to settle charges from the U.S. securities regulator and multiple states. The charges relate to the offering and sale of unregistered securities through an interest-earning program.
Unregistered Crypto Lending Product
The U.S. Securities and Exchange Commission (SEC) revealed that TradeStation failed to register its crypto lending product. This product allowed U.S. investors to deposit or purchase assets on TradeStation’s platform in exchange for yield. The offering began in 2020 and was terminated in 2022.
TradeStation’s failure to register the product violated securities laws. The company offered the product without proper authorization, leading to the settlement with the SEC and various states.
The $3 million settlement will resolve the charges and bring an end to the investigation into TradeStation’s unregistered securities offering.
This case serves as a reminder of the importance of compliance with securities regulations in the cryptocurrency space. It highlights the need for platforms to ensure that their products and offerings are in line with established laws and regulations.
