DELAWARE CITY, Del.--(BUSINESS WIRE)--EZTD Inc. (OTCQX:EZTD) today announced that it has reached a settlement with the United States Securities and Exchange Commission resolving its investigation into EZTD's sale of binary options in the United States between 2011 and 2014. The SEC’s investigation concerned historical business operations. EZTD closed its platform to new U.S. customers in January 2014, and the platform was completely closed to U.S. customers before the end of the third quarter of 2014. Accordingly, the SEC's investigation did not relate to EZTD's current business operations.
As part of the settlement, EZTD agreed to pay a $200,000 fine and to pay $1,515,858 in disgorgement reflecting revenues earned during the period in which EZTD operated its binary option platform in the United States. EZTD previously reserved for these amounts in its financial statements.
The SEC's investigation concerned whether binary options sold by EZTD to customers in the United States during the period between 2011 and 2014 were securities under the securities laws of the United States.
In the United States, binary options are currently traded on Nadex and the Cantor Exchange both of which have been approved by the United States Commodity Futures Trading Commission as a Designated Contracts Market.
Shimon Citron, Chief Executive Officer of EZTD, commented on the resolution with the SEC saying, "We are glad to amicably resolve these issues with the SEC regarding our historical business operations. The Board of EZTD continues to work on creating value for its shareholders."
Mr. Citron further added, "Although our business continues to focus on Europe and Japan, we would very much like to expand to the United States using approved regulatory pathways."
Launched in 2011, EZTD Inc. (F/K/A EZTRADER Inc.), www.eztd.info (United States) (“EZTD”) is one of the pioneers of secure and regulated online binary trading, and maintains its position as a leading, reputable and reliable operator of a proprietary business-to-consumer binary options platform. EZTD offers 24/7 trading on more than 120 assets including commodities, stocks, currency pairs and indices. Currently available in more than 11 languages, EZTD is growing rapidly and continues to seek exciting opportunities to further enhance its presence throughout Europe and Asia. EZTD’s advanced mobile app is one of the most user-friendly and secure trading apps and is available for both Android and iPhone. EZTrader.com is wholly-owned and operated by EZTD’s wholly-owned subsidiary, WGM Services Ltd., which operates throughout Europe. EZTD also operates in Japan through its wholly-owned subsidiary, EZInvest Securities Co. Ltd.
Safe Harbor Statement
This press release contains forward-looking statements. In some cases these forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believe,” “anticipate, “expect,” “plan,” “may,” “will,” “should,” “potential,” or in each case, their negative or other variations thereon or comparable terminology, although not all forward-looking statements contain these words. For example, forward-looking statements are used in this press release in reference to creating value for shareholders and the company’s potential expansion into the United States. These forward-looking statements and their implications are based on the current expectations of the management of EZTD only, and are subject to a number of factors and uncertainties, many of which are beyond the control of EZTD, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. EZTD undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. For a more detailed description of the risks and uncertainties affecting EZTD, reference is made to the heading "Risk Factors" in EZTD's Annual Report on Form 10-K filed with the Securities and Exchange Commission.