The Securities and Exchange Commission (SEC) today announced charges against TradeStation Crypto, Inc. for failing to register the offer and sale of a crypto lending product that allowed U.S. investors to deposit or purchase crypto assets in a TradeStation account in exchange for the company’s promise to pay interest.
To settle the SEC’s charges, TradeStation agreed to pay a $1.5 million penalty.
According to the SEC’s order, TradeStation began to offer and sell the crypto lending product with the interest feature around August 2020. 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 order finds TradeStation offered and sold…
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