eToro USA settled SEC crypto case in September 2024

What happened

On 12 September 2024, the US Securities and Exchange Commission announced a settled order against eToro USA LLC. The SEC said the company had operated as a broker and clearing agency in connection with certain crypto assets offered through its US platform without the required registration.

Settlement terms

eToro USA agreed to pay a $1.5 million civil penalty, cease violating the applicable federal securities-law provisions, and make only a limited set of crypto assets available for trading in the United States at that time. Customers were given a period to sell other crypto assets before eToro would liquidate remaining positions under the order's process.

The company consented without admitting or denying the SEC's findings, except as to the Commission's jurisdiction and the subject matter of the proceedings. eToro said the settlement allowed it to focus on its US securities business.

Current status

TraderJury marks this enforcement matter resolved because it ended in a settlement with a defined penalty and undertakings. eToro's later annual filing says it paid the penalty on time and complied with the order; that does not amount to a broader review verdict on the broker.

Scope

This case concerns eToro USA LLC and the US crypto-asset services described in the SEC order. It is not a finding about every eToro group company, its securities offering, or service in other countries.