(2024)
SEC v. eToro USA
Year
2024
Criminal or Civil
Civil
Year Resolved
2025
Jurisdiction (Court/State)
The settlement was administered under the jurisdiction of the U.S. Securities and Exchange Commission in Washington, D.C.
Filed By
The lawsuit was filed by the U.S. Securities and Exchange Commission (SEC).
Penalty/Fine (USD)
eToro agreed to pay a civil monetary penalty of $1.5 million to resolve the SEC’s charges.
Lawsuit Overview
eToro USA LLC reached a settlement with the U.S. Securities and Exchange Commission (SEC) over allegations that the company operated an unregistered broker and clearing agency through its cryptocurrency trading platform, allowing U.S. users to trade crypto assets that the SEC considers securities without proper registration.
Category
This case pertains to the unlawful operation of an unregistered broker and clearing agency within the cryptocurrency trading sector.
Notable Individuals Involved
Notable individuals cited in the SEC’s press release include Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, and investigators Jon Daniels, Alison Levine, and Tiantong Wen.
Investor Loss Estimate
There is no specific estimate of investor losses provided, but eToro stated that less than 3% of U.S. customer crypto holdings would be subject to liquidation, and all proceeds from such liquidations will be returned to customers.
Final Outcome
eToro did not admit or deny the findings but agreed to a cease-and-desist order, a $1.5 million penalty, and a timeline for ceasing trading of all crypto assets except Bitcoin, Bitcoin Cash, and Ethereum for U.S. users; remaining non-compliant assets will be liquidated by March 18, 2025.
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