{"id":34555,"date":"2021-01-11T20:02:43","date_gmt":"2021-01-11T18:02:43","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=34555"},"modified":"2025-08-28T21:09:49","modified_gmt":"2025-08-28T18:09:49","slug":"etoro-clients-plan-to-sue-platform-over-crypto-cfd-closures","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/etoro-clients-plan-to-sue-platform-over-crypto-cfd-closures\/","title":{"rendered":"eToro clients plan to sue platform over crypto-CFD closures"},"content":{"rendered":"<p>European clients of eToro intend to obtain from the Cyprus Securities and Exchange Commission (CySEC) the revocation of the platform&#8217;s licence after the forced closure of crypto CFDs, according to <a href=\\\"https:\/\/www.coindesk.com\/european-etoro-traders-call-foul-over-closure-of-leveraged-crypto-contracts\\\" target=\\\"_blank\\\" rel=\\\"noopener noreferrer\\\">CoinDesk<\/a>.<!--more--><\/p>\n<p>\\n<\/p>\n<p>The company is accused of breaching the user agreement by giving clients little time to respond to the planned 100% margin increase on crypto CFDs. The accompanying note explained that to avoid this situation, additional funds would need to be deposited and\/or other positions closed.<\/p>\n<p>\\n<\/p>\n<blockquote>\n<p>&#8220;The notice arrived by email four hours before the closure of all leveraged crypto CFDs. Users woke up in different time zones and found that their positions had been liquidated,&#8221; explained Slavko Vesenyak, a lawyer from Slovenia representing the interests of some of the platform&#8217;s clients.<\/p>\n<\/blockquote>\n<p>\\n<\/p>\n<p>Amy Butler, eToro&#8217;s head of public relations, said that these policy changes, prompted by &#8220;extreme market volatility&#8221;, did not affect the overwhelming majority of clients.<\/p>\n<p>\\n<\/p>\n<blockquote>\n<p>&#8220;We are aware that there are a few dozen disappointed clients, and we are doing everything to ease their discontent,&#8221; she explained.<\/p>\n<\/blockquote>\n<p>\\n<\/p>\n<p>According to Butler, the temporary decision to reduce the leverage level on crypto CFDs was made &#8220;from a risk-management perspective&#8221;. She added that it was not connected to <a href=\"https:\/\/forklog.com\/en\/news\/media-etoro-plans-ipo-on-wall-street-to-raise-5-billion\">potential plans for an IPO<\/a>.<\/p>\n<p>\\n<\/p>\n<p>A few days ago, eToro raised the minimum recommended deposit from $200 to $1,000. The move came in response to retail investor frenzy to get in on the growth of the cryptocurrency market.<\/p>\n<p>\\n<\/p>\n<blockquote class=\\\"twitter-tweet\\\"><p>\\n<\/p>\n<p dir=\\\"ltr\\\" lang=\\\"en\\\">.<a href=\\\"https:\/\/twitter.com\/eToro?ref_src=twsrc%5Etfw\\\">@eToro<\/a> has seen an unprecedented demand for our services from new users. To manage demand &#038; ensure our existing community of 17M registered users can continue to access our services uninterrupted, we have temporarily increased the minimum deposit amount for new users to $1,000.<\/p>\n<p>\\n<\/p>\n<p>\u2014 eToroService (@eToroService) <a href=\\\"https:\/\/twitter.com\/eToroService\/status\/1347589343989395457?ref_src=twsrc%5Etfw\\\">January 8, 2021<\/a><\/p>\n<\/blockquote>\n<p>\\n<\/p>\n<p><script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>\\n<\/p>\n<blockquote>\n<p>&#8220;eToro clients will get their funds back. If eToro does not return them, this will be done by the Cypriot state,&#8221; said Yuri Toplak, adjunct professor at Fordham University, who also represents the interests of the platform&#8217;s affected users.<\/p>\n<\/blockquote>\n<p>\\n<\/p>\n<p>In an interview with the publication, he suggested that against the backdrop of <a href=\"https:\/\/forklog.com\/en\/news\/bitcoin-price-climbs-above-41000\">growth of the cryptocurrency market to new records<\/a>, eToro concluded that it was not in a position to pay clients that much money and simply terminated the contracts. He added that he would seek a revocation of the licence at CySEC.<\/p>\n<p>\\n<\/p>\n<p>As reported, the new tax regulation in Germany <a href=\"https:\/\/forklog.com\/en\/news\/germany-to-effectively-ban-trading-of-crypto-derivatives\">has effectively prohibited the trading of crypto derivatives in this country since 2021<\/a>.<\/p>\n<p>\\n<\/p>\n<p>Earlier, the UK Financial Conduct Authority (FCA) <a href=\"https:\/\/forklog.com\/en\/news\/uk-regulator-bans-sale-of-cryptocurrency-derivatives-to-retail-investors\">banned the sale of derivatives<\/a> and exchange-traded notes based on cryptocurrencies to retail investors.<\/p>\n<p>\\n<\/p>\n<p>Follow ForkLog news on <a href=\\\"https:\/\/twitter.com\/ForkLog\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener noreferrer\\\">Twitter<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>European clients of eToro intend to seek the revocation of the platform&#8217;s licence from the Cyprus Securities and Exchange Commission (CySEC) after the forced closure of crypto CFDs, according to CoinDesk.<\/p>\n","protected":false},"author":1,"featured_media":26216,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1796,826,733],"class_list":["post-34555","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-contracts-for-difference","tag-etoro","tag-europe"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/34555","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=34555"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/34555\/revisions"}],"predecessor-version":[{"id":34556,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/34555\/revisions\/34556"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/26216"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=34555"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=34555"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=34555"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}