tZERO fined $800k for sharing order information without SEC knowledge

Rick Steves

“Whether and how an ATS displays orders and trading interest is fundamental to any ATS’s operations because order display provides buyers and sellers with the expectation of liquidity in the ATS and the potential execution of a participant’s orders”

tZERO has allegedly violated federal disclosure rules, according to the Securities and Exchange Commission, who fined the blockchain-powered trading platform $800,000.

The subsidiary of Overstock.com was able to settle with the US financial watchdog under the condition of refraining from further regulatory violations.

The SEC pressed charges against tZERO because it has allegedly failed to properly disclose key information in accordance with federal regulations.

The trading platform was sharing order information with a broker-dealer affiliate and Blue Ocean Technologies, a Singapore-based trading partner which it later acquired. tZERO also failed to file an amendment to its Form ATS with the SEC for more than two years.

“These proceedings arise out of Respondent’s operation of an alternative trading system (“ATS”), pursuant to an exemption from registration that required it to comply with Regulation ATS, promulgated under the Exchange Act.2 Regulation ATS requires, among other things, that ATSs make certain disclosures to the Commission”, said the SEC’s order.

“In addition, Regulation ATS requires an ATS that has a significant percentage of overall trading volume in a security or category of securities during a certain period of time to comply with a number of heightened requirements, known as the “Fair Access Rule”.

“Whether and how an ATS displays orders and trading interest is fundamental to any ATS’s operations because order display provides buyers and sellers with the expectation of liquidity in the ATS and the potential execution of a participant’s orders,” the SEC order added.

FinanceFeeds webinar: Expert panel to discuss market data for multi-asset brokerages  

tZERO launched major updates to crypto app

A few months ago, tZERO added five new altcoins to its trading platform: Bitcoin Cash (BCH), Stellar Lumen (XLM), Cardano (ADA), Compound (COMP), and Uniswap (UNI).

This brings its total available cryptocurrency suite to 15 different coins and coincides with recent updates to the tZERO crypto app.

The additional cryptocurrencies will complement tZERO’s existing product range of digital assets, which includes the already installed Bitcoin, Ethereum, Litecoin, Chainlink, Dogecoin, USDC, 0x, Bitcoin SV, Basic Attention Token, and Ravencoin.

The move comes on the heels of tZERO launching major updates to its crypto app, which introduced faster settlement times and higher buy limits: The app now supports $25,000 per day deposit limits as part of its standard offering.

tZERO Crypto has also partnered with a third-party custodian to custody investors’ assets in a regulated hosted wallet environment.

tZERO’s broker-dealer subsidiary, tZERO Markets, offers crypto sales, trading, electronic execution, and portfolio execution for buy- and sell-side clients.

The company’s retail brokerage service, which is also registered with the Securities and Exchange Commission (SEC), allows the firm to grab the capacity to serve individual traders instead of only accredited investors. Additionally, it provides token issuers with investment banking and placement agent services in connection with capital raising activities.

 

Read this next

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

Digital Assets

Coinbase scores minor victory vs SEC, but lawsuit to proceed

A federal judge in Manhattan, U.S. District Judge Katherine Polk Failla, ruled on Wednesday that the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase can largely proceed.

Web3

COTI Teams Up with Civic for Enhanced Digital Identity Control

СOTI and Civic are teaming up to enhance digital identity security in Web3, aiming to provide users with more control over their digital selves through innovative technology.

Digital Assets

BlockDAG Takes on Chainlink (LINK) Crypto, and RON With DeFi Card and 5000x Profit Potential

Explore BlockDAG’s innovative DeFi card, which transforms cryptocurrency into spendable cash, alongside Chainlink (LINK) crypto and Ronin’s advancements.

Digital Assets

Court finally decides on Sam Bankman-Fried sentence, experts predict 20 years

Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX, is set to face sentencing on Thursday in a pivotal moment that could see the entrepreneur beginning a lengthy period in federal prison.

Crypto Insider

DeFi Winter Thaws: A Look at the Emerging Landscape

The past year has seen a significant shift in the Decentralized Finance (DeFi) market, transitioning from a period of decline (“DeFi winter”) to a potential season of growth.

Digital Assets

KuCoin announces $10 million airdrop as users withdraw $1.2 billion

KuCoin – the fourth-largest crypto exchange in the world by trading volume – today announced plans to distribute $10 million worth of Bitcoin and its native KCS token via an airdrop event.

<