CFTC and SEC Fine Netrios, Red Acre $2.5 Million Over Illegal White-Label Trading Services

The U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) have jointly taken enforcement action against offshore technology providers Netrios LP Ltd. and Red Acre Ltd., imposing a combined $2.5 million in penalties for facilitating illegal off-exchange leveraged trading for U.S. retail customers.

Under the CFTC settlement, Netrios will pay $1.75 million and Red Acre $750,000, with both firms ordered to cease the unlawful conduct. The SEC filed parallel settled charges based on the same underlying activities.

According to regulators, from 2019 to September 2025, Netrios operated a white-label brokerage service that enabled offshore brokers to offer contracts for difference (CFDs) and other leveraged products to U.S. retail investors. Its turnkey solution included branded trading websites, trading platform infrastructure, liquidity, trade execution, back-office systems, and custody of customer funds. Red Acre supported the operation by providing customer onboarding, KYC verification, marketing, and customer service.

The CFTC found that the firms facilitated leveraged retail commodity transactions for U.S. customers who were not eligible contract participants, activities that should only have been conducted through a registered exchange. The SEC further alleged that the white-label brokers offered CFDs linked to stocks, commodities, foreign exchange, cryptocurrencies, and other assets without the required regulatory registration.

Customers funded accounts primarily with cryptocurrencies, while Netrios managed trading infrastructure, pricing, and risk management across multiple broker brands. Regulators said at least 15 white-label brokers primarily operated from the United States using the platform.

The enforcement action underscores growing U.S. scrutiny of broker-as-a-service providers that enable unregistered derivatives trading. The CFTC acknowledged assistance from the Central Bank of Ireland, the Financial Services Authority of Seychelles, and the Malta Financial Services Authority during the investigation.