SEC Imposes $1.5 Million Fine on eToro Investment Platform

The U.S. Securities and Exchange Commission (SEC) has imposed a $1.5 million fine on the investment platform eToro USA LLC.

“Since at least 2020, eToro has operated as a broker and clearing agency, allowing U.S. clients to trade crypto assets offered and sold as securities through its online platform. However, the company failed to meet the registration requirements mandated by federal securities laws,” the agency’s press release stated.

Following the SEC’s decision, U.S. clients will now be able to trade only Bitcoin, Bitcoin Cash, and Ethereum on the platform. Users will also be given 180 days to sell all other crypto assets.

eToro CEO and co-founder Yoni Assia stated that regulatory challenges in the U.S. will have a minimal impact on the company’s global operations:

“Outside the U.S., eToro users will still have access to more than 100 financial instruments. As a global trading and investment platform with multiple assets, we continue to show strong growth and remain committed to becoming a public company in the future.”

The top executive added that compliance and cooperation with regulators are of utmost importance to eToro.

“We now have a clear regulatory framework for working with crypto assets in our key markets—the UK and Europe. We believe that we will soon see something similar in the U.S.,” Assia added. “Once this happens, we will strive to enable crypto asset trading in accordance with the regulatory framework.”

According to the company’s statement, from March 11, 2025, American users will only be able to close orders with Bitcoin, Bitcoin Cash, and Ethereum. Then, from March 18, all remaining cryptocurrency positions will be liquidated, and the funds will be transferred to the cash balance of users’ investment accounts.

In the 2024 fiscal year, SEC’s penalties from crypto startups reached a record $4.7 billion.