According to the regional department, from December 2020 to October 2022, TradeStation distributed advertising materials with inaccurate information about the trading of digital assets. The company offered customers to trade in bitcoin and other digital assets, without disclosing details about potential risks and possible financial losses.
“Advertising created a false impression of the simplicity and security of investment in digital assets, which could mislead both beginners and experienced crypto -investors,” said Finra.
FINRA also announced that from July to September 2022, Tradestation distributed advertising materials about the services related to cryptocurrencies without clarifying that these assets were offered by an affiliated brokerage company that did not have a FINRA license.
A fine of $ 85,000 became part of a settlement agreement, within the framework of which TradeStation was obliged to reconsider its advertising practices and bring them into line with the requirements of the department.
A year earlier, TradeStation entered into a settlement agreement with the US Securities and Exchange Commission (SEC) and agreed to voluntarily repay a fine of about $ 3 million, imposed by the regulator for the offer to customers of unregistered securities.
Source: Bits
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