On November 10, 2016, the Commission instituted and simultaneously settled cease-and-desist proceedings (the "Order") against EZTD Inc. ("Respondent"). In the Order, the Commission found that, from June 2011 to August 2014, the Respondent made offers and sales of binary options to U.S. customers, through two of its online trading platforms, eztrader.com and globaloption.com. These binary options constituted securities under the federal securities laws. The Respondent, however, failed to register any of its offers and sales of binary options to U.S. customers and it failed to register with the Commission as a broker-dealer. The Commission ordered the Respondent to pay a total of $1,773,549.00 in disgorgement, prejudgment interest, and civil money penalties. The Commission also created a Fair Fund ("Fair Fund"), pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, so the penalty, along with the disgorgement and prejudgment interest, collected can be distributed to those harmed by the Respondent's misconduct. See the Commission's order: Release No. 33-10251.

As of November 8, 2017, the Respondent has paid a total of $738,980 into the Fair Fund, and any future funds paid by the Respondent will be added to the Fair Fund for distribution to harmed investors.

On December 1, 2017, the Commission issued an order appointing Miller Kaplan Arase LLP, as the Tax Administrator of the Fair Fund.

On March 23, 2020, the Commission issued an order appointing KCC, LLC, as the Fund Administrator to oversee the administration and distribution of the Fair Fund and, set the administrator’s bond amount. See the Commission’s Order: Release No. 34-88454.

On May 10, 2023, the Commission published a notice of the proposed plan of distribution and opportunity for comment and simultaneously published the proposed plan of distribution (“Proposed Plan”). The notice provides the public with 30 days to submit their comments on the Proposed Plan. See the Commission’s Notice: Release No. 34-97468 and the Proposed Plan.

The Proposed Plan provides that the distribution of the Fair Fund shall be made to those injured investors identified by Commission staff during its investigation of binary options purchased through EZTD’s two online trading platforms in accordance with the methodology detailed in the Proposed Plan.

On July 7, 2023, the Commission issued an order approving the Proposed Plan, and simultaneously published the approved Plan of Distribution (the "Plan"). See the Commission's Order: Release No. 34-97856 and the Plan.

For more information, please contact the Fund Administrator:

KCC, LLC
Telephone Number: 855-660-1130
Website: www.EZTDFairFund.com
Email: info@EZTDFairFund.com