March 12, 2024

SANTA FE – The Securities Division of the New Mexico Regulation and Licensing Department announced today that it has entered into a settlement with TradeStation Crypto, Inc. (TradeStation) to resolve New Mexico’s investigation into TradeStation’s crypto interest-earning program.

The $1.5 million multistate settlement is the result of a North American Securities Administrators Association task force comprised of eight state securities regulators including 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 crypto interest-earning program. The settlement will be divided equally among the 51 United States jurisdictions, with New Mexico receiving more than $29,000 in civil fines. The fines will be remitted to the State Treasurer and are to be deposited by law in the Current School Fund.

“The Securities Division is committed to protecting investors and ensuring New Mexicans have confidence when investing their money,” said Alissa Berger, Attorney for the New Mexico Securities Division. “State securities regulators recognize the value that new, crypto-related technology brings to financial markets, but it is imperative those providing these services are complying with existing laws and regulations that help promote a competitive capital market.”

TradeStation, a Florida corporation formed in 2018, provides crypto-asset-related financial services to retail and institutional customers in the United States, including investing and trading services. From August 2020 to June 2022, TradeStation offered a crypto interest-earning program to New Mexico investors. Under this program, investors passively earned interest on crypto assets by loaning them to TradeStation. The company maintained total discretion over the revenue-generating activities utilized to earn returns for investors and offered and promoted their crypto interest-earning program in New Mexico and the United States at large via its website and various platforms.

The New Mexico Securities Division encourages investors to contact the division if they suspect they have been targeted by similar crypto currency investment schemes.  Please contact the division at 1-800-704- 5533 or by visiting rld.nm.gov/securities-division.