TradeStation Crypto is set to discontinue its services and products in the United States by February 22, 2024, following a settlement deal with the U.S. Securities and Exchange Commission (SEC) and multiple state regulators.
The terms of the agreement include a payment of $3 million in penalties, with $2 million going to the SEC and $1 million going to the state regulators.
This settlement was a result of allegations from the regulators that the platform violated securities laws by failing to register an interest-bearing crypto lending product.
The regulator’s investigation into TradeStation Crypto uncovered that the company sold and offered an interest-bearing crypto lending product to investors in the United States from August 2020 to June 2022. The product allowed investors to deposit or purchase crypto assets in exchange for promised interest payments.
TradeStation Crypto neither admitted nor denied the SEC’s findings and has also consented to the terms of the regulator’s order to cease offering the product. The platform stopped offering the product to its customers on June 30, 2022.
TradeStation Crypto is a wholly-owned subsidiary of Monex Group and is also part of the company’s broader investment strategy in the cryptocurrency sector. Monex Group’s past acquisitions include Coincheck, a Japanese crypto exchange, and 3iQ Digital Holdings, a Canadian fund manager that offers a Bitcoin and Ethereum spot exchange-traded fund.
TradeStation Crypto’s deal comes on the back of Binance’s settlement with the U.S. Treasury and other regulators in November 2023. The exchange agreed to pay a $4 billion fine, the largest-ever fine for a crypto firm in U.S. history, after the regulators brought charges that its success was partially due to its involvement in illegal activities and violating federal regulations.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
