The Commodity Futures Trading Commission (CFTC) has ordered offshore technology firms Netrios LP Ltd. and Red Acre Ltd. to pay a combined $2.5 million to resolve charges related to providing infrastructure for unregistered trading platforms that served U.S. retail customers.
Under the order entered on June 26, Netrios will pay $1.75 million and Red Acre $750,000. Both firms are required to cease the conduct outlined by the regulator. Neither company admitted or denied the CFTC’s findings.
Services provided to offshore trading platforms
Netrios, incorporated in Saint Lucia and described as a "broker as a service" provider, sold a packaged service that enabled offshore, branded platforms to offer leveraged trading. According to the CFTC, this package included ready-made websites, sublicensed third-party trading software, margin accounts holding customer funds, trade execution and liquidity, and various back-office functions.
The CFTC stated that the structure of these so-called white-label entities was largely identical, with branding being the primary difference. Netrios controlled the products offered, with leveraged foreign exchange representing most of the activity, alongside metals, cryptocurrencies, and equities. Customers typically funded accounts using cryptocurrencies, including Bitcoin, ether, or tether, which were sent to margin accounts.
The regulator noted that, for U.S. retail customers, none of the trades resulted in actual delivery of the underlying asset within 28 days. The customers involved were not eligible contract participants, and neither Netrios nor Red Acre has ever been registered with the CFTC.
Role of Red Acre and associated entities
Red Acre, incorporated in Malta, provided back-office, compliance, and payments services. The firm handled onboarding and screening of customers, responded to technical questions, addressed complaints, and supported marketing activities. The CFTC said Red Acre carried out these functions while knowing that Netrios was facilitating off-exchange trades for U.S. retail customers.
Netrios and Red Acre belong to the same fintech group that owns or co-owns TradeLocker and FunderPro. According to the CFTC, the white-label business at issue stopped operating at the end of September 2025.
Regulatory coordination
The Securities and Exchange Commission brought its own case concerning the same conduct on the same day as the CFTC’s order. The CFTC credited the Central Bank of Ireland, the Seychelles Financial Services Authority, and the Malta Financial Services Authority for their assistance in the matter.
