The U.S. Securities and Exchange Commission (SEC) has filed charges against TradeStation Crypto.
"The firm did not register an offer and sale of a crypto lending product that allowed American investors to deposit or buy crypto assets into a TradeStation account in exchange for the company's promise to pay interest," the Commission said in a statement.
The message also says that TradeStation advertised its service as a way to earn interest on investments and "make your crypto assets work for you." According to the SEC, the firm had complete freedom of action on how to dispose of assets in order to generate income to pay out funds to investors.
According to the statement of the Commission, on June 30, 2022, TradeStation voluntarily stopped offering its product. Earlier, the company reported that on February 22, 2024, they intend to stop offering all services related to cryptocurrencies.
It should be noted that the company did not recognize or challenge the agency's conclusions, but agreed to repay a fine of $ 1.5 million. In addition, TradeStation will pay another $1.5 million to settle similar charges from government regulators.