Arizona enters into multistate settlement with TradeStation over crypto investment program
Apr 15, 2024, 10:00 AM
Arizona has entered into a $1.5 million multistate settlement with TradeStation over a crypto interest-earning program. (Pexels Photo)
(Pexels Photo)
PHOENIX – Arizona has entered into a $1.5 million multistate settlement with a Florida company over a crypto investment program, regulators announced last week.
TradeStation offered the crypto interest-earning program through its online platform in Arizona and other states from August 2020 to June 2022, according to the Arizona Corporation Commission. It was designed to earn interest for investors who loaned crypto assets to the company.
However, TradeStation ran afoul of regulators by allegedly selling investors unregistered securities and failing to provide proper information and disclosures about potential risks.
TradeStation settlement includes Arizona administrative penalty
The company, which formed in 2018, already has reimbursed Arizona investors but also must pay the state a $29,411 administrative penalty as part of the settlement.
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“Today’s agreement reflects the ongoing efforts by state securities regulators to protect investors,” Arizona Corporation Commission Chair Jim O’Connor said in a press release Thursday. “We are pleased to know that the investors received their money back.”
A North American Securities Administrators Association task force negotiated the TradeStation settlement, which includes Arizona and 25 other jurisdictions.
