SoFi Technologies Agrees To Pay FINRA Fine, Compensate Clients

<img width="250" height="135" src="https://www.leaprate.com/wp-content/uploads/2023/12/SoFi-Office1-250×135.jpg" class="webfeedsFeaturedVisual wp-post-image" alt="" decoding="async" style="float: left; margin-right: 5px;" link_thumbnail="" srcset="https://www.leaprate.com/wp-content/uploads/2023/12/SoFi-Office1-250×135.jpg 250w, https://www.leaprate.com/wp-content/uploads/2023/12/SoFi-Office1-700×379.jpg 700w, https://www.leaprate.com/wp-content/uploads/2023/12/SoFi-Office1-120×65.jpg 120w, https://www.leaprate.com/wp-content/uploads/2023/12/SoFi-Office1-245×133.jpg 245w, https://www.leaprate.com/wp-content/uploads/2023/12/SoFi-Office1-500×271.jpg 500w, https://www.leaprate.com/wp-content/uploads/2023/12/SoFi-Office1.jpg 750w" sizes="(max-width: 250px) 100vw, 250px" /><p>From January 2019 to March 2023, SoFi was found lacking in effective supervisory systems. This oversight led to the automatic inclusion of over two million clients in its fully paid securities lending program, conducted without obtaining necessary consent or ensuring full disclosure.</p>
<p>Moreover, SoFi was responsible for circulating misleading materials about the rewards customers would receive for participating in this program.</p>
<p>SoFi has reached a settlement agreement with FINRA, where it will be officially censured. In addition, the company is required to pay a fine of $500,000. Along with this penalty, SoFi will also make restitution payments totalling over $198,000.</p>
<p>SoFi Technologies recently announced its decision to cease operations in the cryptocurrency sector. Customers of the company are being offered the opportunity to transfer their accounts to UK’s Blockchain.com</p>
<p>Based in San Francisco, SoFi disclosed that it would discontinue its cryptocurrency services from December 19. The company also announced that it had halted the opening of new cryptocurrency accounts.</p>
<hr />
<p><a href="https://finaffiliates.us20.list-manage.com/subscribe/post?u=e0dd4d77c259eb270712a4eeb&amp;id=fd200b8f75&amp;v_id=4291&amp;f_id=00946ce6f0" target="_blank" rel="noopener">Don’t miss out the latest news, subscribe to LeapRate’s newsletter</a></p>
<hr />
<p>The cryptocurrency market has faced significant challenges and seen major players fail since the previous year, with the notable collapse of FTX, led by Sam Bankman-Fried. However, recent months have shown a positive shift in investor sentiment, partly due to numerous applications for spot bitcoin exchange-traded funds.</p>
<p>Despite this, the industry suffered a recent setback with the former head of Binance, Changpeng Zhao, admitting to violations of U.S. anti-money laundering regulations in a $4.3 billion legal settlement.</p>
<p>The sector continues to navigate regulatory challenges, especially in its interactions with the U.S. Securities and Exchange Commission.</p>
<p>SoFi has made provisions for its customers to either transition their accounts to Blockchain.com or close their accounts. However, customers residing in New York are excluded from this migration offer due to state-specific availability constraints.</p>
<p>SoFi’s platform previously allowed its users to trade in over 20 different cryptocurrencies, including well-known ones like Bitcoin, dogecoin, and ethereum.</p>
<p>The post <a rel="nofollow" href="https://www.leaprate.com/financial-services/sofi-technologies-agrees-to-pay-finra-fine-compensate-clients/">SoFi Technologies Agrees To Pay FINRA Fine, Compensate Clients</a> appeared first on <a rel="nofollow" href="https://www.leaprate.com">LeapRate</a>.</p>