Stockpile Investments, INC, has agreed to pay a fine of $ 50,000 as part of a settlement with the Financial Industry Regulatory Authority (Finra).
From July to September 2022, investments in Stockpile were distributed communications on encryption assets and Crypto Asset -related services offered by a non -connected entity that violated one or more of the content standards in the FINRA 2210 rule.
These communications included a website, e -mail and the company’s mobile application interface and the relevant advertising materials.
Most of the communications failed to reveal obviously that cryptographic assets were not offered by stock investments, but were offered by a non -connected entity which, unlike stock investment, was not a registered broker or a member of the Finra or SIPC.
For example, StockPile investments have sent an email to potential customers announcing the launch of the StockPile mobile application, which contained the statement “Stockpile is the only place where children can choose from over 30 cryptocurrencies or redeem Crypto Gift Cards. This statement failed to distinguish between the products and the services offered by the business and those offered by the unnecessary entity.
Similarly, the investment reserves website included the statement “Family and friends can contribute to your child’s financial future. This statement could potentially confuse retail investors about which entity has offered the services and which regulations and protections are implemented.
In addition, some of the violated communications discussed cryptographic assets offered through the non -connected entity without a balanced description of both benefits and the relevant investment risks in these assets.
Therefore, stock investments violated the Finra 2210 (d) (1) (A), 2210 (d) (1) (b), 2210 (d) (3) and 2010 rules.
In addition to the $ 50,000 fine, the company agreed to a accusation.
Stockpile investments have been a member of Finra since 2012. Stockpile investments are based in San Francisco, California and have eight registered representatives in an office.