The United States Securities and Exchange Commission (SEC) has filed charges against TradeStation Crypto for reportedly operating a crypto lending product without possessing an appropriate securities license.
The SEC argues that TradeStation Crypto failed to meet the requirements for a registration exemption, consequently exposing it to a significant fine.
TradeStation Crypto Faces Hefty Fines
A recent statement reveals that the platform advertised to customers the potential for their crypto assets to earn interest. However, it was disclosed that the platform retained sole control over the utilization of these assets to generate income.
“TradeStation marketed the interest feature as a way for investors to earn interest and ‘Put your crypto assets to work for you,’ and TradeStation had complete discretion over how to deploy the assets to generate revenue to pay interest to investors.”
The SEC imposed a $1.5 million penalty on TradeStation, alongside an additional $1.5 million fine levied by state regulators. However, it’s important to note that the settlement agreement does not mean TradeStation has admitted to the SEC’s findings.
Furthermore, th
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Author: Ciaran Lyons
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