The subsidiary of Japanese Monex Group had already said it would cease providing services in the United States.
Trading platform TradeStation Crypto settled with the United States Securities and Exchange Commission (SEC) and a taskforce of state regulators for failing to register an interest-bearing lending product on Feb. 6. The SEC and 26 states will split $3 million in penalties from the case.
Between August 2020 and June 30, 2022, TradeStation Crypto offered “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,” the SEC said in a statement. TradeStation had complete discretion over how the assets were used to generate revenue to pay interest to investors, it added.
The SEC issued a consent order finding that the product was an unregistered security. TradeStation Crypto did not admit to or deny the SEC findings.
