eToro settles with SEC for $1.5 million and agrees to significantly pare back its crypto arm

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The Block2024/09/11 16:00

By:The Block

Quick Take The SEC says the financial services firm operated as an “unregistered broker and unregistered clearing agency.” eToro agreed to make a select set of crypto available for trading, including bitcoin, Bitcoin Cash and ether.

Financial services company eToro has agreed to pay $1.5 million to settle the U.S. Securities and Exchange Commission's charges that it operated unlawfully as a broker and clearing agency connected to its crypto business.

eToro, without admitting or denying the SEC's findings, agreed to make a select set of crypto available for trading, including bitcoin, Bitcoin Cash and ether, according to a statement released by the SEC on Thursday.

“By removing tokens offered as investment contracts from its platform, eToro has chosen to come into compliance and operate within our established regulatory framework. This resolution not only enhances investor protection, but also offers a pathway for other crypto intermediaries,” said Gurbir S. Grewal, Director of the SEC’s division of enforcement in the statement . “The $1.5 million penalty reflects eToro’s agreement to cease violating applicable federal securities laws as it continues its U.S. operations.”

This is a developing story.

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