There are so many interesting things happening because of broadband these days: telehealth, remote work, precision agriculture and then there are some that are less easy to fully understand, at least for me. So, I’m starting to track those topics more and want to share what I learn, including today’s announcement from the Minnesota Department of Commerce …
The Minnesota Department of Commerce is one of multiple states to enter into a settlement with TradeStation Crypto, Inc. The settlement resolves the investigation into TradeStation’s cryptocurrency interest-earning program. See consent order.
TradeStation is a Florida-based corporation that provides cryptocurrency-asset-related financial services to retail customers and institutional customers in the United States, including investing and trading services. From February 2021 to June 2022, TradeStation offered a cryptocurrency interest-earning program to Minnesota investors. Under this program, investors passively earned interest on crypto assets by loaning them to TradeStation. TradeStation maintained total discretion over the revenue-generating activities utilized to earn returns for investors. The company offered and promoted its crypto interest-earning program in Minnesota and the United States at large via its website and various platforms.
TradeStation is alleged to have failed to comply with Minnesota securities registration requirements and, as a result, offered and sold securities in Minnesota that were unregistered or did not meet an exemption for registration as required by state law. …
The $1.5 million multistate settlement, on behalf of 51 United States jurisdictions, is the result of a North American Securities Administration Association (NASAA) task force of eight state securities regulators from Alabama, California, Mississippi, North Carolina, Ohio, South Carolina, Washington and Wisconsin. The task force determined that during the offering period, TradeStation engaged in the unregistered offer and sale of securities via its cryptocurrency interest-earning program.
In Minnesota alone, there were at least 155 active investor digital asset trading accounts collectively valued at almost $300,000.
TradeStation will pay each state a fine of $29,411.76, for a total of almost $1.5 million. The company will also cease offering, selling, or renewing its crypto interest earning program until such activities are compliant with applicable state and federal securities laws. TradeStation has repaid investors, including interest and earnings.
They offer assistance if you have a crypto currency issue:
Minnesota Consumer Service Center
Minnesota consumers and businesses with concerns or complaints about crypto investments or other securities concerns can contact Commerce’s Consumer Service Center:
- File a complaint online
- Email or call: consumer.protection@state.mn.us | 651-539-1600 (choose “securities” option) .
- Verify whether a securities investment company is licensed to do business in Minnesota with our License Lookup.
- Search Commerce Actions and Regulatory Documents to view past enforcement actions.