Australia ASIC sues eToro alleging lax oversight of crypto derivatives, causing consumer losses

The Australian Securities and Investments Commission (ASIC) has filed a lawsuit against the online trading platform eToro for allegedly violating financial regulations related to cryptocurrency derivative products, leading to two-thirds of CFD traders reportedly losing funds.

ASIC vs. eToro

According to the concise statement filed by ASIC, eToro is accused of contravening the design and distribution obligations under the Corporations Act 2001 from Oct. 2021 to July 2023.