Fantasy Stock Trading Site Receives Cease and Desist Letter From SEC
Stock Battle, one of the first sites to allow real money stock picking games modeled after daily fantasy sports, has received a cease-and-desist letter from the Securities and Exchange Commission (SEC), according to Yahoo Finance.
A letter was sent out to Stock Battle customers by the company’s co-founder Lee Lowden on Monday, noting that the SEC considered his firm’s activities to be engaging in “unregulated security based swaps”.
“Unfortunately, we do not have the capital, time, or resources to be ‘regulated.’ As a result, we have decided that it is best to close our operations,” Lowden wrote.
Neither Lowden or an SEC spokesperson would comment when approached by Yahoo Finance.
On its site, StockBattle.com bills itself as “Stock Trading Meets Fantasy Gaming”.
- Aaron Goldstein, Gambling911.com