TradeStation Crypto, the crypto unit of TradeStation Group, part of Monex Group (OTCPK:MNXBF), agreed to pay a $1.5M penalty to settle the U.S. Securities and Commission's charges accusing the Florida-based company of failing to register a crypto lending product before offering it to investors, the regulator said on Wednesday.

The crypto lending product allowed U.S. investors to deposit or buy crypto assets in a TradeStation account in exchange for the company's promise to pay interest. TradeStation Crypto started to offer and sell the product as a security around August 2020.

Since the product did not qualify for a registration redemption, TradeStation was required to register its offer and sale but failed to do so.

On June 30, 2022, TradeStation stopped offering and selling the interest feature of the product to investors, according to the SEC's order. Earlier this year, the company said it intends to terminate all its crypto-linked products and services in the U.S. on Feb. 22, 2024.

In parallel actions, TradeStation agreed to pay an additional $1.5M in fines to settle similar charges by state regulatory authorities.