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 settlement with TradeStation illustrates the ongoing practice of businesses offering cryptocurrency products that do not comply with Minnesota’s securities laws,” said Jacqueline Olson, Minnesota Commerce Assistant Commissioner of Enforcement. “It’s important for consumers to investigate crypto-related products before investing in them. If there are issues, call us. Commerce is committed to protecting consumers.”   

The multistate settlement with TradeStation is part of a larger multistate effort to investigate companies that offer cryptocurrency interest accounts and hold them accountable when they have violated laws. (See news of consent order with crypto firm Nexo Capital and news of consent order with crypto fintech BlockFi for sales of unregistered securities.) The Minnesota Department of Commerce has previously warned Minnesotans about growing concerns at the state and federal level over decentralized finance, which includes cryptocurrency products and services. (Consumer Alert: After crypto bankruptcies, Commerce urges caution before investing in crypto-interest accounts). 

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.  

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. 

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Connect with the Minnesota Commerce Department 
Get updates and news from the Minnesota Department of Commerce by following Commerce at mn.gov/commerce or @MNCommerce on social media.  

MEDIA CONTACT:
Kristen Glazer, Assistant Communications Director 
Minnesota Department of Commerce 
kristen.glazer@state.mn.us