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After almost a year of legal wrangling, the eToro lawsuit has come to an end. 

The US Securities and Exchange Commission (SEC) announced that the eToro trading platform has agreed to pay $1.5 million to settle charges for operating as an unregistered broker that facilitated buying and selling certain crypto assets as securities.  

According to the settlement agreement, eToro has agreed to cease violating the applicable federal securities laws and will provide a limited set of crypto assets available for trading laws. 

In its order, the SEC emphasized that eToro's offerings, such as its copy trading feature, allowed users to automatically mimic the trades of other investors, effectively operating as an unregistered broker-dealer. 

The SEC also alleged that eToro facilitated transactions in crypto assets that were considered securities without proper registration, violating US federal securities laws.

Gurbir S. Grewal, the Director of the SEC’s Division of Enforcement, said: 

"By removing tokens offered as investment contracts from its platform, eToro has chosen to come into compliance and operate within our established regulatory framework. This resolution not only enhances investor protection but also offers a pathway for other crypto intermediaries”

Even though the trading platform has agreed to pay the $1.5 million penalty, eToro has neither admitted nor denied the SEC’s findings.

Additionally, the company will take steps to ensure compliance with regulatory requirements moving forward. This includes limiting the number of crypto assets available for trading in the US and re-evaluating its copy trading feature.

Apart from the $1.5 million fine, eToro has been ordered to liquidate any crypto assets within 187 days of the order. Additionally, the trading platform must return the proceeds to the respective customers. 

The only crypto assets that US customers can trade on the eToro platform will be Bitcoin (BTC), Bitcoin Cash (BCH), and Ether (ETH).